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Continued Consolidation Called For Taiwan Shares

The Taiwan stock market on Tuesday snapped the five-day winning streak in which it had surged more than 470 points or 4.9 percent. The Taiwan Stock Exchange now rests just above the 10,080-point plateau and it's predicted to extend its losses on Wednesday.

The global forecast for the Asian markets is negative on concerns over the health of the global economy and expected continued profit taking. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The TSE finished modestly lower on Tuesday following losses from the cement stocks, financial shares and technology companies.

For the day, the index slid 54.33 points or 0.54 percent to finish at 10,083.54 after trading between 10,061.70 and 10,126.02 on turnover of 143.54 billion Taiwan dollars.

Among the actives, Asia Cement dropped 1.88 percent, while Taiwan Cement tumbled 2.23 percent, Cathay Financial fell 0.31 percent, Fubon Financial skidded 0.81 percent, CTBC Financial dipped 0.24 percent, Mega Financial collected 0.77 percent, Taiwan Semiconductor Manufacturing Company shed 0.43 percent, United Microelectronics Corporation added 0.85 percent, Hon Hai Precision lost 0.81 percent, Largan Precision plunged 5.53 percent, AsusTek Computer retreated 2.44 percent, AU Optronics gained 0.39 percent, Formosa Plastic gave away 0.49 percent and Chunghwa Telecom was unchanged.

The lead from Wall Street is brutal as stocks saw a substantial move to the downside on Tuesday, more than offsetting Monday's strong gains.

The Dow shed 799.36 points or 3.10 percent to 25,027.07, while the NASDAQ plunged 283.09 points or 3.80 percent to 7,158.43 and the S&P fell 90.31 points or 3.24 percent to 2,700.006.

The sharp pullback came as the yield on two-year notes rose above the yield on five-year notes, which is seen as an indicator of an upcoming economic slowdown. Profit taking also was a factor following Monday's strong gains.

Uncertainty about whether the 90-day trade truce will give the U.S. and China enough time to reach a long-term trade agreement also inspired traders to cash in.

Crude oil prices moved higher on Tuesday amid speculation the OPEC members will agree on a production cut. Crude oil futures for January delivery ended up $0.30 or 0.6 percent at $53.25 a barrel.

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