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Renewed Selling Pressure Predicted For Taiwan Stock Market

The Taiwan stock market has finished higher in two of three trading days since the end of the two-day slide in which it had stumbled more than 150 points or 1.1 percent. The Taiwan Stock Exchange now rests just above the 12,690-point plateau although it figures to head south again on Friday.

The global forecast for the Asian markets is weak as optimism waned in the United States over a coronavirus relief package. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The TSE finished modestly higher on Thursday following gains from the financial shares and a mixed picture from the technology stocks.

For the day, the index gained 83.17 points or 0.66 percent to finish at 12,691.75 after trading between 12,650.40 and 12,708.64.

Among the actives, Cathay Financial gained 0.76 percent, while CTBC Financial collected 0.53 percent, Fubon Financial spiked 1.89 percent, E Sun Financial rose 0.38 percent, Taiwan Semiconductor Manufacturing Company jumped 1.87 percent, United Microelectronics Corporation tumbled 1.48 percent, Hon Hai Precision advanced 0.77 percent, Largan Precision eased 0.14 percent, Catcher Technology retreated 1.60 percent, MediaTek added 0.67 percent, Formosa Plastic sank 0.63 percent, Taiwan Cement dipped 0.24 percent and Asia Cement, Mega Financial and First Financial were unchanged.

The lead from Wall Street is negative as stocks were unable to hold on to early gains Thursday, reversing course in the late morning before finishing firmly in the red.

The Dow plunged 405.89 points or 1.45 percent to finish at 27,534.58, while the NASDAQ tumbled 221.97 points or 1.99 percent to end at 10,919.59 and the S&P 500 dropped 59.77 points or 1.76 percent to close at 3,339.19.

Strength among tech stocks contributed to the early advance on Wall Street, but they also helped to lead the subsequent pullback by the markets.

Adding to the negative sentiment, Senate Republicans failed to advance a new coronavirus stimulus bill. Facing unanimous opposition from Democrats, the bill couldn't clear a key procedural hurdle in the latest sign of the difficulty lawmakers have had in passing a new relief package.

In economic news, the Labor Department said initial jobless claims were roughly unchanged last week, defying expectations for a notable decline. Also, the Labor Department said producer prices increased slightly more than expected last month.

Crude oil prices drifted lower Thursday after data showed an increase in U.S. crude inventories last week, while easing of output curbs by OPEC+ also contributed to oil's weakness. West Texas Intermediate Crude oil futures for October ended down $0.75 or 2 percent at $37.30 a barrel.

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