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Taiwan Bourse May Stop The Bleeding On Wednesday

The Taiwan stock market has ended lower in five straight sessions, skidding almost 500 points or 4.6 percent along the way. The Taiwan Stock Exchange now rests just beneath the 10,520-point plateau although bargain hunting may give it a lift on Wednesday.

The global forecast for the Asian markets is positive on bargain hunting, rising crude oil prices and optimism that the United States and China will reach a trade agreement. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index fell 39.04 points or 0.37 percent to finish at 10,519.25 after trading between 10,363.02 and 10,544.97.

Among the actives, Taiwan Semiconductor Manufacturing Company shed 0.80 percent, while United Microelectronics Corporation added 0.39 percent, Hon Hai Precision tumbled 1.85 percent, Largan Precision rose 0.59 percent, Catcher Technology gained 0.23 percent, AsusTek Computer sank 1.93 percent, MediaTek advanced 0.87 percent, Cathay Financial plunged 3.58 percent, Fubon Financial skidded 1.48 percent, First Financial slid 0.47 percent, Taishin Financial fell 0.72 percent, Asia Cement retreated 0.97 percent, Taiwan Cement lost 1.07 percent, Formosa Plastic was down 0.46 percent and Mega Financial and CTBC Financial were unchanged.

The lead from Wall Street is firm as stocks opened higher on Tuesday and remained in the green throughout the session, offsetting the losses from the previous day.

The Dow added 207.06 points or 0.82 percent to end at 25,532.05, while the NASDAQ jumped 87.47 points or 1.14 percent to 7,734.49 and the S&P 500 rose 22.54 points or 0.80 percent to 2,834.41.

Bargain hunting has contributed to the rebound on Wall Street, with traders picking up stocks at reduced levels following Monday's sell-off.

The markets are also benefiting from optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, repeatedly arguing that the U.S. is in a stronger position than China in the negotiations.

Crude oil prices moved higher on Tuesday amid supply concerns and slightly easing worries about energy demand after the U.S. and China struck a conciliatory tone on trade talks. West Texas Intermediate Crude oil futures for June ended up $0.74 or 1.2 percent at $61.78 a barrel.

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