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Recovery Predicted For Taiwan Stock Market

The Taiwan stock market on Wednesday ended the four-day winning streak in which it had gathered more than 130 points or 1.3 percent. The Taiwan Stock Exchange now rests just shy of the 9,845-point plateau although it may rebound on Thursday.

The global forecast for the Asian markets is cautiously optimistic, with solid earnings news offset by concerns over the ongoing U.S. government shutdown. The European markets were down and the U.A. bourses were up and the Asian markets are tipped to follow the latter lead.

The TSE finished modestly lower on Wednesday as losses from the technology and plastic stocks were cushioned by support from the cement companies and a mixed bag from the financial sector.

For the day, the index lost 48.26 points or 0.49 percent to finish at 9,846.40 after trading between 9,828.03 and 9,873.39 on turnover of 65.25 billion Taiwan dollars.

Among the actives, Cathay Financial shed 1.0 percent, while Fubon Financial added 0.11 percent, CTBC Financial lost 0.73 percent, Mega Financial collected 0.57 percent, Taiwan Semiconductor Manufacturing Company skidded 1.12 percent, United Microelectronics Corporation was down 1.28 percent, Hon Hai Precision tumbled 1.41 percent, Largan Precision dropped 1.07 percent, AsusTek Computer fell 1.74 percent, AU Optronics advanced 0.81 percent, Asia Cement gained 0.56 percent, Taiwan Cement perked 0.55 percent, Formosa Plastics retreated 1.94 percent and Nan Ya Plastics plunged 2.36 percent.

The lead from Wall Street is positive, if volatile, as stocks fluctuated on Wednesday, showing wild swings before ending in positive territory.

The Dow added 171.14 points or 0.70 percent to 24,575.62, while the NASDAQ gained 5.41 points or 0.08 percent to 7,025.77 and the S&P rose 5.80 points or 0.22 percent to 2,638.70.

The notable advance by the Dow reflected a positive reaction to quarterly results from several blue chips, including IBM Corp. (IBM), United Technologies (UTX) and Procter & Gamble (PG).

Meanwhile, the volatility by the broader markets reflected uncertainty about the economic impact of the ongoing U.S. government shutdown. White House Council of Economic Advisers Chairman Kevin Hassett conceded the U.S. could see zero growth if the shutdown continues for the whole first quarter.

Crude oil futures for March ended down $0.39 or 0.7 percent at $52.62 a barrel, well off Wednesday's low of $51.87. Oil futures rose to a high of $53.64, with traders speculating a likely U.S. sanctions on Venezuelan oil.

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