Taiwan Stock Market Due For Profit Taking

The Taiwan stock market has finished higher now in six straight sessions, advancing almost 270 points or 3.5 percent in that span. The Taiwan Stock Exchange now rests just shy of the 8,400-point plateau, although investors figure to lock in gains on Wednesday.

The global forecast for the Asian markets suggests consolidation on profit taking following the rallies seen in recent days, while apprehension ahead of earnings season adds to the soft sentiment. The European markets were higher and the U.S. bourses were mostly lower, and the Asian markets figure to follow the latter lead.

The TSE finished modestly higher on Tuesday following gains from the technology stocks and the plastics companies.

For the day, the index perked 41.74 points or 0.50 percent to finish at 8,394.10 after trading between 8,390.89 and 8,482.83 on turnover of 99.62 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company added 0.38 percent, while Largan Precision surged 8.47 percent, Hon Hai Precision Industry advanced 0.47 percent, Formosa Plastics jumped 1.98 percent, Uni-President Enterprises collected 0.69 percent and Eclat Textile skidded 2.78 percent.

The lead from Wall Street is negative as stocks moved mostly lower on Tuesday as traders cashed in on the strong upward move seen over the two previous sessions.

The Dow inched up 13.76 points or 0.1 percent to 16,790.19, while the NASDAQ slid 32.90 points or 0.7 percent to 4,748.36 and the S&P 500 fell 7.13 points or 0.4 percent to 1,979.92.

Uncertainty about the upcoming earnings season also weighed on the markets, with Alcoa (AA) due to kick off the reporting season after the close of trading on Thursday.

On the U.S. economic front, the Commerce Department said that the U.S. trade deficit widened significantly in August to $48.3 billion from a revised $41.8 billion in July. The deficit had been expected to widen to $48.0 billion.

Closer to home, Taiwan will provide September data for imports, exports, trade balance and inflation later today.

Imports are expected to tumble 13.5 percent on year after losing 16.7 percent in August. Exports are tipped to fall 11.2 percent after sliding 14.8 percent in the previous month. The trade surplus is called at $3.9 billion, down from $3.96 billion a month earlier.

Consumer prices are expected to fall 0.5 percent on year after slipping 0.45 percent in August. Wholesale prices are called lower by 8.8 percent after losing 9.23 percent a month earlier.

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