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Renewed Selling Pressure Expected For Taiwan Shares

The Taiwan stock market on Wednesday bounced higher again on Thursday, one session after snapping the four-day winning streak in which it had spiked more than 530 points or 3.8 percent. The Taiwan Stock Exchange now sits just above the 15,210-point plateau and it's tipped to open in the red on Friday.

The global forecast for the Asian markets suggests consolidation after the markets responded yesterday to the positive catalysts and are now overbought. The European and U.S. markets were up and the Asian bourses are due for profit taking.

The TSE finished sharply higher on Thursday following gains from the financial shares and technology stocks.

For the day, the index accelerated 230.87 points or 1.54 percent to finish at 15,214.00 after trading between 15,049.86 and 15,270.40.

Among the actives, Cathay Financial collected 0.84 percent, while Mega Financial gathered 1.02 percent, CTBC Financial perked 1.28 percent, Fubon Financial gained 1.32 percent, First Financial improved 1.19 percent, Taiwan Semiconductor Manufacturing Company rallied 2.91 percent, United Microelectronics Corporation tumbled 1.60 percent, Hon Hai Precision jumped 1.90 percent, Largan Precision skidded 1.30 percent, Catcher Technology climbed 0.96 percent, MediaTek advanced 0.88 percent, Formosa Plastic spiked 2.86 percent, Asia Cement rose 0.23 percent, Taiwan Cement fell 0.23 percent and E Sun Financial was unchanged.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Thursday and reached fresh record closing highs.

The Dow climbed 211.73 points or 0.69 percent to finish at 31,041.13, while the NASDAQ surged 326.69 points or 2.56 percent to end at 13.067.48 and the S&P 500 gained 55.65 points or 1.48 percent to close at 3,803.79.

The strength on Wall Street came as U.S. lawmakers certified President-elect Joe Biden's victory after the process was delayed by several hours as supporters of President Donald Trump stormed the U.S. Capitol building.

The certification of Biden's victory along with Democratic victories in Georgia's Senate runoff elections will give Democrats control of the House, Senate and the White House, which is expected to lead to additional stimulus.

In economic news, the Labor Department noted a modest decrease in first-time claims for U.S. unemployment benefits last week. Also, The Institute for Supply Management said service sector activity in the U.S. unexpectedly grew at a faster pace in December.

Crude oil futures ended higher on Thursday, extending gains to a third straight session, with the recent data showing a drop in stockpiles continuing to support prices. West Texas Intermediate Crude oil futures for February ended up $0.20 or 0.4 percent at $50.83 a barrel.

Closer to home, Taiwan will release December figures for imports, exports and trade balance later today. Imports are tipped to rise 4.1 percent on year after gaining 10.0 percent in November. Exports are called higher by an annual 9.2 percent after rising 12.0 percent in the previous month. The trade surplus is pegged at $4.6 billion, down from $5.27 billion a month earlier.

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