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Taiwan Bourse May Flirt With 11,000-Point Mark

The Taiwan stock market has finished higher in back-to-back trading days, collecting more than 160 points or 1.5 percent along the way. The Taiwan Stock Exchange now rests just above the 10,900-point plateau and it's expected to see additional support on Thursday.

The global forecast for the Asian markets is broadly positive on optimism for economic recovery in the wake of the Covid-19 shutdown. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in similar fashion.

The TSE finished modestly higher on Wednesday as gains from the financials were capped by weakness from the cement companies and a mixed picture from the technology stocks.

For the day, the index added 47.36 points or 0.44 percent to finish at 10,907.80 after trading between 10,860.15 and 10,933.98.

Among the actives, Cathay Financial collected 0.51 percent, while Mega Financial gained 0.82 percent, Fubon Financial increased 0.60 percent, E Sun Financial rose 0.37 percent, Taiwan Semiconductor Manufacturing Company advanced 0.86 percent, United Microelectronics Corporation shed 0.67 percent, Hon Hai Precision lost 0.40 percent, Largan Precision added 0.65 percent, Catcher Technology tumbled 2.90 percent, MediaTek jumped 1.73 percent, Formosa Plastic perked 0.23 percent, Asia Cement fell 0.34 percent, Taiwan Cement dipped 0.23 percent and Formosa Chemical, CTBC Financial and First Financial were unchanged.

The lead from Wall Street is upbeat as stocks showed a strong move to the upside on Wednesday, erasing the losses posted in the previous session.

The Dow climbed 369.04 points or 1.52 percent to finish at 24,575.90, while the NASDAQ surged 190.67 points or 2.08 percent to 9,375.78 and the S&P 500 jumped 48.67 points or 1.67 percent to end at 2,971.61.

The rally on Wall Street reflected optimism for an economic recovery as states reopen following the coronavirus-induced lockdowns. Early indications suggest the states that have reopened have not seen a spike in coronavirus cases, which has led to hopes the economy may rebound more quickly than expected.

Positive sentiment was also generated by earnings news from home improvement retailer Lowe's (LOW), which reported Q1 results that exceeded estimates on both the top and bottom lines.

Also, the minutes of the Federal Reserve's latest monetary policy meeting highlighted concerns about the uncertainty and risks to economic activity created by the coronavirus pandemic.

Crude oil prices climbed to a 10-week high on Wednesday after data showed a drop in crude stockpiles, and amid optimism about a pickup in energy demand. West Texas Intermediate Crude oil futures for July ended up $1.53, or 4.8 percent at $33.49 a barrel, the highest since March 10.

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