Plus   Neg

Taiwan Shares May See Renewed Selling Pressure

The Taiwan stock market on Wednesday snapped the three-day slide in which it had retreated more than 105 points or 0.9 percent. The Taiwan Stock Exchange now rests just beneath the 11,175-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets is negative thanks to renewed concern over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The TSE finished modestly higher on Wednesday following gains from the financial shares and technology stocks.

For the day, the index collected 28.42 points or 0.26 percent to finish at 11,173.21 after trading between 11,119.24 and 11,188.01 on turnover of 176.35 billion Taiwan dollars.

Among the actives, United Microelectronics Corporation surged 9.79 percent, while Taiwan Semiconductor Manufacturing Company jumped 1.31 percent, Catcher Technology gained 0.73 percent, Hon Hai Precision added 0.11 percent, Largan Precision soared 6.53 percent, AU Optronics shed 0.37 percent, MediaTek skidded 1.08 percent, Cathay Financial collected 0.73 percent, Fubon Financial advanced 0.93 percent, CTBC Financial climbed 1.13 percent, Chunghwa Telecom perked 0.46 percent, China Steel fell 0.41 percent, Taiwan Steel Union picked up 0.88 percent and Innolux, Mega Financial, First Financial and Formosa Plastic were unchanged.

The lead from Wall Street is soft as stocks saw modest strength for much of Wednesday but came under pressure following the Federal Reserve's monetary policy announcement.

The Dow slid 119.53 points or 0.47 percent to 25,201.20, while the NASDAQ eased 8.09 points or 0.11 percent to 7,695.70 and the S&P 500 fell 11.22 points or 0.40 percent to 2,775.63.

The pullback came after the Fed announced its decision to raise interest rates by 25 basis points to a range of 1.75 to 2 percent. The rate hike was widely expected, but the Fed surprised investors by forecasting two additional rate hikes this year after previously predicting only one rate.

The central bank said data received since its May meeting indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate.

In economic news, the Labor Department noted a bigger than expected increase in producer prices in May - while core producer prices also ticked higher.

Crude oil futures rose Wednesday after energy inventories fell more than forecast. July WTI oil climbed 28 cents or 0.4 percent to settle at $66.64/bbl.

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