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Renewed Selling Pressure Likely For Taiwan Stock Market

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(RTTNews) – The Taiwan stock market has moved higher in two of three trading days since the end of the four-day losing streak in which it had lost more than 200 points or 1.7 percent. The Taiwan Stock Exchange now rests just above the 12,875-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets is soft on concerns over a new wave of the coronavirus and doubts about a new stimulus package to deal with it. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.

The TSE finished slightly higher on Wednesday following mixed performances from the technology stocks and cement companies, while the financials were soft.

For the day, the index was up 14.88 points or 0.12 percent to finish at 12,877.25 after trading between 12,846.42 and 12,942.12.

Among the actives, Cathay Financial dipped 0.13 percent, while Mega Financial eased 0.18 percent, First Financial fell 0.25 percent, E Sun Financial retreated 0.81 percent, Taiwan Semiconductor Manufacturing Company added 0.44 percent, United Microelectronics Corporation gained 0.48 percent, Hon Hai Precision skidded 1.23 percent, Largan Precision jumped 1.78 percent, Catcher Technology tumbled 1.67 percent, MediaTek dropped 0.86 percent, Formosa Plastic sank 0.63 percent, Asia Cement rose 0.49 percent, Taiwan Cement slid 0.12 percent and CTBC Financial and Fubon Financial were unchanged.

The lead from Wall Street is negative as stocks showed a lack of direction on Wednesday, bouncing back and forth across the unchanged line before finally finishing in the red.

The Dow shed 97.97 points or 0.35 percent to finish at 28,210.82, while the NASDAQ lost 31.80 points or 0.28 percent to end at 11,484.69 and the S&P 500 slid 7.56 points or 0.22 percent to close at 3,435.56.

The choppy trading on Wall Street came as traders kept an eye on the latest developments in Washington, as lawmakers try to reach an agreement on a new stimulus bill.

However, Senate Majority Leader Mitch McConnell revealed on Tuesday that he has warned the White House not to make a deal before the elections.

Federal Reserve Governor Lael Brainard urged Congress to pass a new relief bill in a speech at an online conference hosted by the Society of Professional Economists.

Crude oil prices tumbled Wednesday, weighed by concerns over a drop in energy demand following a smaller than expected drop in oil stockpiles and an increase in gasoline inventories. West Texas Intermediate Crude oil futures for December were down $1.67 or 4 percent at $40.03 a barrel.

Closer to home, Taiwan will see September figures for unemployment later today; in August, the jobless rate was 3.83 percent.