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Taiwan Stock Market May Find Traction On Thursday

The Taiwan stock market has finished lower in two straight sessions, sinking almost 50 points or 0.4 percent along the way. The Taiwan Stock Exchange now sits just above the 12,540-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets is upbeat on solid earnings news and economic data. The European markets were mixed and the U.S. bourses moved higher and the Asian markets are expected to follow the latter lead.

The TSE finished modestly lower on Wednesday following losses from the technology stocks, gains from the financials and a mixed picture from the cement companies.

For the day, the index fell 45.76 points or 0.36 percent to finish at 12,540.97 after trading between 12,488.01 and 12,660.87.

Among the actives, Cathay Financial climbed 1.13 percent, while Mega Financial jumped 1.74 percent, CTBC Financial collected 0.78 percent, Fubon Financial was up 0.24 percent, First Financial rallied 1.73 percent, E Sun Financial advanced 0.93 percent, Taiwan Semiconductor Manufacturing Company plunged 2.99 percent, United Microelectronics Corporation added 0.67 percent, Hon Hai Precision shed 0.51 percent, Largan Precision skidded 1.53 percent, Catcher Technology fell 0.23 percent, MediaTek rose 0.29 percent, Asia Cement lost 0.38 percent, Taiwan Cement gathered 1.24 percent and Formosa Plastic perked 0.78 percent.

The lead from Wall Street is positive as stocks opened higher on Wednesday and picked up steam as the day progressed.

The Dow added 160.29 points or 0.61 percent to finish at 26,539.57, while the NASDAQ spiked 140.85 points or 1.35 percent to end at 10,542.94 and the S&P 500 rose 40.00 points or 1.24 percent to close at 3,258.44.

Early buying interest was partly generated by the latest batch of earnings news, with a number of big-name companies reporting better than expected quarterly results including Advanced Micro Devices (AMD) and C.H. Robinson (CHRW).

The strength on Wall Street also reflected a report from the National Association of Realtors showing another significant increase in pending home sales in June.

Stocks saw continued strength after the Federal Reserve announced its widely expected decision to leave interest rates at near-zero levels amid the economic hardship imposed by the coronavirus pandemic.

Crude oil prices moved higher on Wednesday after data showed a larger than expected decline in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September ended up $0.23 or 0.6 percent at $41.27 a barrel.

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