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Taiwan Bourse Tipped To Hand Back Tuesday's Gains

The Taiwan stock market has alternated between positive and negative finishes through the last six 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 10,860-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets suggests profit taking after multiple sessions of gain, as well as ongoing concerns over the lingering effects of Covid-19. The European and U.S. markets were down and the Asian bourses are tipped to follow in similar fashion.

The TSE finished sharply higher on Tuesday following gains from the financial shares, technology stocks and cement companies.

For the day, the index jumped 119.89 points or 1.12 percent to finish at 10,860.44 after trading between 10,812.79 and 10,924.79.

Among the actives, Cathay Financial collected 1.15 percent, while Mega Financial accelerated 1.66 percent, CTBC Financial jumped 1.79 percent, Fubon Financial spiked 1.94 percent, First Financial climbed 1.38 percent, E Sun Financial rose 0.37 percent, Taiwan Semiconductor Manufacturing Company added 0.52 percent, United Microelectronics Corporation dropped 0.99 percent, Hon Hai Precision fell 0.27 percent, Largan Precision lost 0.39 percent, MediaTek soared 4.88 percent, Formosa Plastic perked 1.41 percent, Asia Cement gained 1.03 percent, Taiwan Cement added 1.53 percent and Catcher Technology was unchanged.

The lead from Wall Street is negative as stocks turned in a lackluster performance of Tuesday before coming under pressure going into the close - offsetting gains from the previous session.

The Dow shed 390.51 points or 1.59 percent to finish at 24,206.86, while the NASDAQ lost 49.72 points or 0.54 percent to 9.185.10 and the S&P 500 fell 30.97 points or 1.05 percent to 2,922.94.

The late-day weakness on Wall Street came as traders cashed in on the rally seen on Monday, which lifted the Nasdaq and the S&P 500 to their best closing levels in over two months.

Traders have recently expressed considerable optimism about the economy reopening, although lingering concerns about the coronavirus pandemic led to some caution.

Traders were also reacting to comments from Federal Reserve Chair Jerome Powell, who reaffirmed the central bank will provide more support to the economy.

Crude oil prices were higher Tuesday, supported by increased demand and output cuts on the expiration of the front-month contract. West Texas Intermediate Crude oil futures expired at $32.50 a barrel, gaining $0.68 or 2.1 percent. July series WTI contract advanced $0.31 or 1 percent to settle at $31.96 a barrel.

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