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Taiwan Stock Market May Test Resistance At 17,000 Points On Friday

The Taiwan stock market has tracked higher in two of three trading days since the end of the two-day losing streak in which it had tumbled more than 525 points or 3 percent. The Taiwan Stock Exchange now sits just above the 16,710-point plateau and it's got a strong lead again on Friday.

The global forecast for the Asian markets is broadly positive on a U.S. debt limit agreement, upbeat economic news and a spike in crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

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

For the day, the index spiked 320.70 points or 1.96 percent to finish at 16,713.86 after trading between 16,465.57 and 16,731.58.

Among the actives, Mega Financial collected 0.47 percent, while CTBC Financial added 0.66 percent, Fubon Financial perked 1.07 percent, First Financial rose 0.67 percent, E Sun Financial gained 0.77 percent, Taiwan Semiconductor Manufacturing Company climbed 1.58 percent, United Microelectronics Corporation accelerated 4.34 percent, Hon Hai Precision spiked 3.88 percent, Largan Precision jumped 1.91 percent, Catcher Technology advanced 1.56 percent, MediaTek soared 4.59 percent, Delta Electronics rallied 1.64 percent, Asia Cement increased 0.33 percent, Taiwan Cement gathered 1.00 percent and Cathay Financial and Formosa Plastic were unchanged.

The lead from Wall Street is solid as the major averages opened higher on Thursday and remained that way throughout the trading day.

The Dow surged 337.95 points or 0.98 percent to finish at 34,754.94, while the NASDAQ jumped 152.10 points or 1.05 percent to close at 14,654.02 and the S&P 500 gained 36.21 points or 0.83 percent to end at 4,399.76.

The rally on Wall Street came as lawmakers reached an agreement to temporarily extend the debt limit, avoiding a potential default. The agreement would reportedly increase the debt limit by $480 billion, allowing the Treasury to continuing paying its bills through December 3.

Adding to the positive sentiment, a report from the Labor Department showed a bigger than expected pullback in first-time claims for U.S. unemployment benefits last week.

Crude oil prices advanced Thursday, rebounding from losses in the previous session, on reports the U.S. Energy Department is unlikely to tap the nation's Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for November ended up $0.87 or 1.1 percent at $78.30 a barrel.

Closer to home, Taiwan will provide September figures for imports, exports and trade balance later today. Imports are expected to surged 41.2 percent on year, slowing from 46.3 percent in August. Exports are called higher by an annual 25.0 percent, down from 26.9 percent in the previous month. The trade surplus is pegged at $4.2 billion, up from $3.48 billion a month earlier.

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