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Tech Shares Likely To Continue Weighing On Taiwan Bourse

The Taiwan stock market on Monday wrote a finish to the five-day winning streak in which it had advanced more than 410 points or 4.3 percent. The Taiwan Stock Exchange now rests just beneath the 9,890-point plateau and it's looking at another soft start again on Tuesday.

The global forecast for the Asian markets is murky ahead of U.S. midterm elections later today as weakness from oil and technology stocks will likely cap any upside. The European and U.S. markets were mixed and little changed and the Asian bourses figure to open in similar fashion.

The TSE finished slightly lower on Monday as losses from the technology stocks and cement companies were mitigated by support from the financials and plastics.

For the day, the index dipped 16.78 points or 0.17 percent to finish at the daily high of 9,889.81 after moving as low as 9,786.25 on turnover of 102.88 billion Taiwan dollars.

Among the actives, United Microelectronics Corporation plummeted 9.66 percent, while AsusTek Computer dropped 1.69 percent, Taiwan Semiconductor Manufacturing Company shed 0.63 percent, AU Optronics slid 0.43 percent, Largan Precision tumbled 2.55 percent, Hon Hai Precision skidded 1.23 percent, Taiwan Cement plunged 3.02 percent, Asia Cement plummeted 4.84 percent, China Steel advanced 0.83 percent, Formosa Plastics jumped 1.98 percent, Cathay Financial gained 0.20 percent, Fubon Financial added 0.61 percent, CTBC Financial eased 0.24 percent, Yuanta Financial collected 0.99 percent, Mega Financial was up 0.19 percent and Chunghwa Telecom dipped 0.47 percent.

The lead from Wall Street provides little clarity as stocks moved in opposite directions on Monday, with the Dow and the S&P 500 adding to last week's strong gains but the tech-heavy NASDAQ extending the sharp pullback seen last Friday.

The Dow added 190.87 points or 0.76 percent to 25,461.70, while the NASDAQ fell 28.14 points or 0.38 percent to 7,328.85 and the S&P 500 gained 15.25 points or 0.56 percent to 2,738.31.

A notable drop by Apple (AAPL) weighed on the NASDAQ after a report from Japan's Nikkei newspaper said demand for the company's iPhone XR appears to be disappointing.

Overall trading was subdued, with traders reluctant to make significant moves ahead of today's midterm elections, which will decide control of both the House and Senate. Democrats are seen as having a better chance to claim a majority in the House, which would allow them to hinder President Donald Trump's agenda.

The Federal Reserve's looming monetary policy announcement on Thursday also kept traders on the sidelines. While the Fed is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

Crude oil futures eased Monday, after having moved up earlier in the day as U.S. sanctions on Iranian oil and came into force. Crude oil futures for December ended down $0.04 or less than 0.1 percent at $63.10 a barrel.

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