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Lower Open Anticipated For Taiwan Stock Market

The Taiwan stock market bounced higher again on Monday, one session after ending the three-day winning streak in which it had advanced more than 720 points or 4.5 percent. The Taiwan Stock Exchange now sits just above the 16,410-point plateau although it's expected to open under pressure again on Tuesday.

The global forecast for the Asian markets is flat to lower, with anticipated weakness from tech shares likely offset by support from crude oil prices. The European markets were slightly lower and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The TSE finished modestly higher on Tuesday following gains from the cement and plastic stocks, while the financials and technology shares were mixed.

For the day, the index added 68.78 points or 0.42 percent to finish at the daily low of 16,410.16 after peaking at 16,579.17.

Among the actives, Cathay Financial collected 0.48 percent, while Mega Financial eased 0.17 percent, CTBC Financial climbed 0.99 percent, Fubon Financial fell 0.31 percent, First Financial slid 0.48 percent, E Sun Financial dipped 0.20 percent, Taiwan Semiconductor Manufacturing Company shed 0.31 percent, United Microelectronics Corporation lost 0.70 percent, Hon Hai Precision advanced 0.91 percent, Largan Precision spiked 3.08 percent, Catcher Technology added 0.52 percent, MediaTek skidded 1.35 percent, Formosa Plastic rallied 1.89 percent, Asia Cement jumped 2.27 percent and Taiwan Cement gained 0.48 percent.

The lead from Wall Street is mostly weak as stocks opened in the red on Monday and largely stayed that way, although the Dow managed to break into positive territory.

The Dow rose 27.37 points or 0.09 percent to finish at 31,521.69, while the NASDAQ plummeted 341.42 points or 2.46 percent to end at 13,533.05 and the S&P 500 lost 30.21 points or 0.77 percent to close at 3,876.50.

The steep drop by the NASDAQ came as traders moved out of technology stocks amid concerns about the impact of the recent increase in treasury yields. Electric car maker Tesla (TSLA), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) all took heavy damage.

The sell-off came as the yield on the benchmark ten-year note saw further upside, reaching its highest closing level in a year. Bond yields remain at historically low levels, but the recent increase may still spook investors already concerned that stocks are overbought.

In U.S. economic news, the Conference Board reported a bigger than expected increase by its index of leading U.S. economic indicators in January.

Crude oil prices rose sharply on Monday amid supply concerns due to a slowdown in production after last week's severe cold snap. West Texas Intermediate Crude oil futures contracts for March expired at $61.49 a barrel, gaining $2.25 or 3.8 percent for the session.

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