Renewed Consolidation Called For Taiwan Stock Market

The Taiwan stock market on Thursday snapped the two-day slide in which it had slipped almost 50 points or 0.4 percent. The Taiwan Stock Exchange now sits just above the 12,720-point plateau although it figures to head south again on Friday.

The global forecast for the Asian markets is broadly negative following a record drop in U.S. GDP, denting hopes for a quick economic recovery from the Covid-19 pandemic. The European markets were down and the U.S. bourses were mixed and the Asian markets are predicted to open in the red.

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

For the day, the index spiked 181.95 points or 1.45 percent to finish at 12,722.92 after trading between 12,616.83 and 12,769.47.

Among the actives, Mega Financial collected 0.47 percent, while CTBC Financial advanced 0.77 percent, Fubon Financial climbed 0.96 percent, while First Financial jumped 1.06 percent, E Sun Financial was up 0.18 percent, Taiwan Semiconductor Manufacturing Company spiked 2.84 percent, United Microelectronics Corporation dropped 0.89 percent, Largan Precision shed 0.65 percent, Catcher Technology added 0.47 percent, MediaTek rose 0.15 percent, Asia Cement gained 0.88 percent, Taiwan Cement was up 0.67 percent, Formosa Plastic perked 0.77 percent and Hon Hai Precision and Cathay Financial were unchanged.

The lead from Wall Street is mostly soft as stocks opened lower on Thursday and mostly stayed that way, although the NASDAQ managed to climb into the green.

The Dow shed 225.92 points or 0.85 percent to finish at 26,313.65, while the NASDAQ added 44.87 points or 0.43 percent to end at 10,587.81 and the S&P 500 lost 12.22 points or 0.38 percent to close at 3,246.22.

The early sell-off on Wall Street came following a report from the Commerce Department report showing a record contraction in U.S. economic activity in the second quarter. Consumer spending led the decrease as the coronavirus-induced lockdowns forced consumers to stay at home.

A separate report from the Labor Department showed initial jobless claims increased for the second straight week in the week ended July 25th.

Crude oil futures settled lower on Thursday as worries about energy demand outlook resurfaced after data showed a sharp contraction in U.S. GDP and an uptick in unemployment claims and amid a continued surge in coronavirus cases across the world. West Texas Intermediate Crude oil futures for September ended lower by $1.35 or 3.3 percent at $39.92 a barrel.

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