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Soft Start Anticipated For Taiwan Stock Market

The Taiwan stock market has moved lower in two straight sessions, surrendering more than 165 points or 1.4 percent along the way. The Taiwan Stock Exchange now rests just beneath the 11,650-point plateau and it's likely to open under pressure again on Wednesday.

The global forecast for the Asian markets suggests mild consolidation on disappointing earnings news. The European markets and U.S. markets were down and the Asian bourses figure to follow suit.

The TSE finished modestly lower on Tuesday as heavy losses from the technology stocks were mitigated by support from the financial shares and cement companies.

For the day, the index sank 114.53 points or 0.97 percent to finish at 11,648.98 after trading between 11,642.95 and 11,717.10.

Among the actives, Cathay Financial collected 0.24 percent, while Mega Financial climbed 1.23 percent, CTBC Financial added 0.65 percent, Fubon Financial rose 0.11 percent, First Financial advanced 0.83 percent, E Sun Financial gained 0.34 percent, Taiwan Semiconductor Manufacturing Company tumbled 2.87 percent, United Microelectronics Corporation skidded 1.52 percent, Hon Hai Precision shed 0.60 percent, Largan Precision plunged 4.44 percent, Catcher Technology lost 0.40 percent, MediaTek retreated 1.51 percent, Asia Cement perked 0.85 percent, Taiwan Cement increased 0.12 percent and Formosa Plastic and Formosa Chemical were unchanged.

The lead from Wall Street is soft as stocks opened in the red on Tuesday and stayed there most of day, although the NASDAQ peeked above the unchanged line at the session's end.

The Dow shed 165.89 points or 0.56 percent to end at 29,232.19, while the NASDAQ rose 1.57 points or 0.02 percent to 9,732.74 and the S&P 500 fell 9.87 points or 0.29 percent to 3,370.29.

The weakness on Wall Street came after tech giant Apple (AAPL) warned of weaker than previously forecast second quarter revenue. Apple expects to miss its forecast for Q2 due to lower iPhone production and weak Chinese demand as a result of the coronavirus outbreak.

Disappointing earnings news from Walmart (WMT) also weighed on the markets after the retail giant reported weaker than expected fourth quarter results and provided disappointing guidance.

In economic news, the Federal Reserve Bank of New York said growth in New York manufacturing activity saw a notable acceleration in February. A separate report from the National Association of Home Builders showed a slight deterioration in homebuilder confidence in February.

Crude oil futures ended flat on Tuesday with traders weighing the impact of the coronavirus on global energy demand and OPEC and allies' move on production cuts. West Texas Intermediate crude oil futures for March ended at $52.05 a barrel, unchanged from previous close.

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