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Profit Taking Tipped For Taiwan Bourse

The Taiwan stock market has finished higher in eight consecutive trading days, surging almost 600 points or 5.7 percent along the way. Now at a 28-year closing high, the Taiwan Stock Exchange rests just above the 10,915-point plateau although investors figure to cash in on Tuesday.

The global forecast for the Asian markets is mixed as many of the regional bourses are overbought and overdue for profit taking although the oil and technology stocks are expected to provide continued support. The European and U.S. markets were mixed but little changed and the Asian markets figure to follow that lead.

The TSE finished modestly higher on Monday following gains from the financials and mixed performances from the technology and steel sectors.

For the day, the index gained 35.95 points or 0.33 percent to finish at 10,915.75 after trading between 10,869.12 and 10,918.47 on turnover of 136.78 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company added 0.83 percent, while AU Optronics advanced 0.80 percent, Largan Precision plummeted 4.15 percent, Innolux picked up 0.40 percent, Hon Hai Precision tumbled 1.29 percent, China Steel perked 1.20 percent, Taiwan Steel plunged 6.00 percent, Nan Ya Plastics spiked1.92 percent, Fubon Financial collected 0.57 percent, CTBC Financial soared 2.87 percent, Mega Financial jumped 1.00 percent, E. Sun Financial climbed 1.29 percent and Cathay Financial was unchanged.

The lead from Wall Street is inconclusive as stocks turned in a lackluster performance on Monday, lingering near the unchanged line before closing mixed.

The Dow shed 12.87 points or 0.05 percent to 25,283.00, while the NASDAQ climbed 20.83 points or 0.29 percent to 7,157.39 and the S&P 500 rose 4.56 points or 0.17 percent to 2,747.71.

The choppy trading came as traders expressed uncertainty about the near-term outlook for the markets after the recent run to record highs. A lack of economic data also kept traders on the sidelines, while earnings season is also about to begin.

Oil service stocks showed a significant move to the upside, driving the Philadelphia Oil Service Index up by 1.9 percent. The strength came amid an increase by the price of crude oil, with crude for February delivery rising $0.29 to $61.73 a barrel.

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