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Taiwan Stock Market May Add To Its Winnings On Monday

The Taiwan stock market has finished higher in two of three trading days since the end of the two-day losing streak in which it had declined more than 130 points or 1.3 percent. The Taiwan Stock Exchange now rests just above the 10,420-point plateau and may extend its gains on Monday.

The global forecast for the Asian markets is upbeat on renewed expectations for fiscal stimulus. The European and U.S. markets were sharply higher and the Asian bourses are tipped to open in similar fashion.

The TSE finished modestly higher on Friday following gains from the financial shares and technology stocks, while the cement companies were mixed.

For the day, the index advanced 93.79 points or 0.91 percent to finish at 10,420.89 after trading between 10,318.37 and 10,456.32.

Among the actives, Cathay Financial collected 0.51 percent, while Mega Financial climbed 1.25 percent, CTBC Financial spiked 2.24 percent, Fubon Financial surged 2.98 percent, First Financial rose 0.47 percent, E Sun Financial was up 0.60 percent, Taiwan Semiconductor Manufacturing Company added 0.81 percent, United Microelectronics Corporation soared 3.49 percent, Hon Hai Precision gained 0.56 percent, Largan Precision eased 0.13 percent, Catcher Technology slid 0.23 percent, MediaTek jumped 1.74 percent, Asia Cement accelerated 2.15 percent, Taiwan Cement slid 0.13 percent and Formosa Plastic perked 0.89 percent.

The lead from Wall Street is broadly positive as stocks opened higher on Friday and the gains accelerated as the day progressed.

The Dow added 306.61 points or 1.20 percent to 25,886.01, while the NASDAQ jumped 129.37 points or 1.67 percent to 7,895.99 and the S&P 500 rose 41.08 points or 1.44 percent to 2,888.68. For the week, the Dow shed 1.5 percent, the NASDAQ lost 0.8 percent and the S&P fell 1 percent.

The rally on Wall Street reflected optimism about the world's central banks providing stimulus in order to prevent a global recession. European Central Bank official Olli Rehn expressed the need for significant easing in September to support the flagging eurozone economy, spurring investors.

The expectations for more stimulus fueled a pullback by U.S. treasuries and a subsequent increase in bond yields. The yield on the benchmark ten-year note had dropped below the two-year yield on Wednesday, sparking fears of an impending recession and a sell-off on Wall Street.

In economic news, the University of Michigan noted a significant deterioration in U.S. consumer sentiment in August. Also, the Commerce Department reported an unexpected slump in housing starts in July but a sharper than expected increase in building permits.

Crude oil futures settled higher Friday as recession fears faded amid hopes global central banks will announce further stimulus to revive economic growth. West Texas Intermediate Crude oil futures for September ended up $0.40 or 0.7 percent at $54.87 a barrel.

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