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Rally May Stall For Taiwan Stock Market

The Taiwan stock market has tracked higher in two straight sessions, advancing more than 100 points or 0.6 percent in that span. The Taiwan Stock Exchange now sits just above the 16,440-point plateau although it's expected to open under pressure on Wednesday.

The global forecast for the Asian markets is mixed and flat, with oil and technology stocks likely to continue to weigh. The European and U.S. markets were mixed and little changed and the Asian bourses figure to follow that lead.

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

For the day, the index rose 33.24 points or 0.20 percent to finish at 16,443.40 after trading between 16,211.75 and 16,467.75.

Among the actives, Cathay Financial and Mega Financial both advanced 1.55 percent, CTBC Financial gained 1.47 percent, Fubon Financial collected 1.63 percent, First Financial improved 1.44 percent, E Sun Financial spiked 1.61 percent
Taiwan Semiconductor Manufacturing Company skidded 1.38 percent, United Microelectronics Corporation tumbled 1.76 percent, Hon Hai Precision added 0.45 percent, Largan Precision climbed 1.14 percent, Catcher Technology gathered 1.29 percent, MediaTek jumped 1.47 percent, Formosa Plastic rallied 2.68 percent, Asia Cement was up 0.58 percent and Taiwan Cement perked 1.56 percent.

The lead from Wall Street suggests a hint of support as stocks staged a recovery after opening sharply lower on Tuesday as the Dow and S&P managed to pick into positive territory.

The Dow added 15.66 points or 0.05 percent to finish at 31,537.35, while the NASDAQ fell 67.85 points or 0.50 percent to end at 13,465.20 and the S&P 500 rose 4.87 points or 0.13 percent to close at 3,881.37.

The early sell-off on Wall Street reflected concerns about the outlook for inflation and the potential for higher interest rates due to the recent increase in bond yields. The yields on ten-year notes and thirty-year bonds reached their highest intraday levels since the early days of the coronavirus pandemic earlier in the day.

However, selling pressure waned after Federal Reserve Chair Jerome Powell's remarks before the Senate Banking Committee. Powell reiterated interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.

In U.S. economic news, the Conference Board said consumer confidence has improved more than expected in February.

Crude oil prices ended slightly lower on Tuesday after surging in the previous session. West Texas Intermediate Crude oil futures for April ended down $0.03 at $61.67 a barrel.

Closer to home, Taiwan will provide January figures for export orders, retail sales and industrial production later today. Export orders are expected to surge 44.5 percent on year after jumping 38.3 percent in December. Retail sales were up 1.39 percent on year in December and industrial output rose an annual 9.9 percent.

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