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Continued Consolidation Called For Taiwan Shares

The Taiwan stock market on Tuesday halted the four-day winning streak in which it had advanced more than 435 points or 4.6 percent. The Taiwan Stock Exchange settled just above the 9,955-point plateau, and the market may take further damage on Wednesday.

The global forecast for the Asian markets is muddled ahead of today's monetary policy statement from the Federal Reserve, plus growing geopolitical concerns. The European markets were down and the U.S. bourses were mixed but little changed - and the Asian markets are expected to split the difference.

The TSE finished slightly lower on Tuesday as losses from the technology sector were mitigated by support from the financial shares.

For the day, the index fell 16.29 points or 0.16 percent to finish at 9,956.83 after trading between 9,918.01 and 10,014.28 on turnover of 116.64 billion Taiwan dollars.

Among the actives, Hon Hai Precision Industry, Largan Precision, Catcher Technology and Pegatron all finished in the red.

The lead from Wall Street offers little clarity as stocks were relatively lackluster on Tuesday, with the major averages eventually ending on opposite sides of the unchanged line.

The NASDAQ fell 4.82 points or 0.1 percent to 5,055.42, while the Dow climbed 72.17 points or 0.4 percent to 18,110.14 and the S&P 500 rose 5.84 points or 0.3 percent to 2,114.76.

The early volatility followed reports that Iranian forces seized a cargo ship flagged to the Marshall Islands in the Strait of Hormuz. A U.S. Navy destroyer has been ordered to the region to keep an eye on the situation.

Uncertainty about the Fed's monetary policy announcement later today also weighed. While the Fed is expected to keep interest rates unchanged, traders will be paying close attention to any hints regarding the outlook for rates.

On the economic front, the Conference Board reported an unexpected pullback in U.S. consumer confidence in April.

Corporate earnings news was mixed, with Twitter (TWTR) and Whirlpool (WHR) missing the mark, while Merck (MRK) beat expectations.

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