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Higher Open Called For Taiwan Stock Market

The Taiwan stock market has finished lower in back-to-back trading days, giving away more than 130 points or 1.3 percent in that span. The Taiwan Stock Exchange now rests just above the 10,360-point plateau although it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is broadly positive on an improved outlook for trade between the United States and China, and the resulting surge in crude oil prices. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The TSE finished sharply lower on Tuesday following losses from the financial shares, technology stocks and cement companies.

For the day, the index retreated 109.70 points or 1.05 percent to finish at 10,362.66 after trading between 10,361.89 and 10,436.62.

Among the actives, Cathay Financial slid 0.50 percent, while Mega Financial retreated 1.72 percent, CTBC Financial lost 0.99 percent, Fubon Financial collected 0.95 percent, First Financial was down 1.86 percent, E Sun Financial declined 0.80 percent, Taiwan Semiconductor Manufacturing Company skidded 1.79 percent, United Microelectronics Corporation shed 0.38 percent, Hon Hai Precision dropped 1.09 percent, Largan Precision tumbled 2.48 percent, Catcher Technology fell 0.69 percent, MediaTek sank 1.55 percent, Asia Cement contracted 1.46 percent, Taiwan Cement plummeted 8.34 percent and Formosa Plastic lost 1.49 percent.

The lead from Wall Street is firmly upbeat as stocks moved higher early Tuesday and only got stronger as the day progressed.

The Dow climbed 372.54 points or 1.44 percent to 26,279.91, while the NASDAQ surged 152.95 points or 1.95 percent to 8,016.36 and the S&P 500 jumped 42.57 points or 1.48 percent to 2,926.32.

The rally on Wall Street came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve in the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products. Lighthizer said the 10 percent tariff set to take effect on September 1 will be delayed until December 15 for certain products.

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a sell-off on Wall Street.

In U.S. economic news, the Labor Department said consumer prices rose in line with estimates in July, although the report also showed another bigger than expected increase in core consumer prices.

Crude oil prices shook off early weakness and posted a modest recovery on Tuesday following news of the delay in tariffs. West Texas Intermediate climbed $2.42 or 4.42 percent to $57.20 after the trade announcement after moving as low as $54.78 earlier in the day.

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