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Rebound Expected For Taiwan Stock Market

The Taiwan stock market has alternated between positive and negative finishes through the last five 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 10,740-point plateau although it figures to bounce higher again on Tuesday.

The global forecast for the Asian markets is broadly positive on optimism for a possible vaccine to counter the Covid-19 virus. The European and U.S. markets were sharply higher and the Asian bourses are tipped to follow suit.

The TSE finished modestly lower on Monday as the financial shares and technology stocks were mostly in the red.

For the day, the index sank 74.37 points or 0.69 percent to finish at 10,740.55 after trading between 10,730.70 and 10,812.87.

Among the actives, Cathay Financial eased 0.13 percent, while Mega Financial shed 0.66 percent, CTBC Financial lost 0.51 percent, Fubon Financial collected 0.12 percent, E Sun Financial fell 0.56 percent, Taiwan Semiconductor Manufacturing Company tumbled 2.68 percent, United Microelectronics Corporation skidded 1.95 percent, Hon Hai Precision sank 2.72 percent, Largan Precision plunged 5.04 percent, Catcher Technology tanked 3.66 percent, MediaTek skyrocketed 7.18 percent, Formosa Plastic perked 1.67 percent, Asia Cement dropped 0.80 percent, Taiwan Cement rose 0.12 percent and First Financial was unchanged.

The lead from Wall Street is upbeat as stocks opened sharply higher on Monday and gathered even more steam as the session progressed, cutting into last week's losses.

The Dow surged 911.95 points or 3.85 percent to finish at 24,597.37, while the NASDAQ jumped 220.27 points or 2.44 percent to 9.234.83 and the S&P 500 spiked 90.21 points or 3.15 percent to end at 2,953.91.

The rally on Wall Street came after Moderna (MRNA) reported "positive" phase one results for a potential coronavirus vaccine. Shares of the firm spiked 20 percent after the bio-tech company said an early-stage human trial for a vaccine produced antibodies in all 45 participants.

Energy stocks also saw substantial strength on the day as crude oil prices moved higher on Monday on easing worries about outlook for energy demand. West Texas Intermediate crude oil futures for June ended up $2.39 or 8.1 percent at $31.82 a barrel.

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