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Higher Open Predicted For Taiwan Stock Market

The Taiwan stock market has alternated between positive and negative finishes through the last four trading days since the end of the five-day winning streak in which it had advanced more than 290 points or 2.7 percent. The Taiwan Stock Exchange now rests just above the 10,810-point plateau and it's expected to open in the green on Monday.

The global forecast for the Asian markets suggests mild upside on optimism that some countries are taking steps to reopen following the Covid-19 pandemic. The European and U.S. markets were up on Friday amid considerable volatility and the Asian bourses are tipped to follow suit.

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

For the day, the index gained 34.02 points or 0.32 percent to finish at 10,814.92 after trading between 10,730.55 and 10,904.01.

Among the actives, Cathay Financial fell 0.26 percent, while CTBC Financial collected 0.26 percent, Fubon Financial climbed 1.48 percent, First Financial fell 0.46 percent, E Sun Financial rose 0.19 percent, Taiwan Semiconductor Manufacturing Company jumped 1.71 percent, United Microelectronics Corporation added 0.33 percent, Hon Hai Precision tumbled 1.41 percent, Largan Precision skidded 1.09 percent, Asia Cement perked 0.34 percent, Taiwan Cement sank 0.70 percent, Formosa Plastic was up 0.12 percent and Mega Financial, MediaTek and Catcher Technology were unchanged.

The lead from Wall Street is cautiously optimistic as stocks saw considerable volatility Friday after coming under pressure early in the session. The major averages bounced back and forth across the unchanged line before eventually ending higher.

The Dow added 60.08 points or 0.25 percent to 23,685.42, while the NASDAQ climbed 70.84 points or 0.79 percent to 9,014.56 and the S&P 500 rose 11.20 points or 0.39 percent to 2,863.70. For the week, the Dow shed 2.7 percent, the S&P fell 2.3 percent and the NASDAQ lost 1.2 percent.

The higher close on Wall Street came as traders shrugged off some dismal U.S. economic data, including reports showing record decreases in retail sales and industrial production in April.

Concerns about the economy were offset by a University of Michigan report showing an unexpected improvement in consumer sentiment in May, as well as ongoing plans for states and countries to reopen.

Crude oil futures ended sharply higher on Friday, extending recent gains amid hopes for some gains in energy demand, and on hopes the output cuts from major producers will support prices. West Texas Intermediate Crude oil futures for June ended up $1.87 or 6.8 percent at $29.43 a barrel.

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