Renewed Consolidation Expected For Taiwan Stock Market

(RTTNews) - The Taiwan stock market on Monday wrote a finish to the two-day losing streak in which it had fallen almost 400 points or 0.9 percent. The Taiwan Stock Exchange now sits just beneath the 44,930-point plateau although it may head south again on Tuesday. The global forecast for the Asian markets is weak on continuing concerns over the conflict in the Middle East and the resulting spike in crude oil prices. The European markets were mixed and flat and the U.S. bourses were slightly soft and the Asian markets figure to split the difference.

The TSE finished sharply higher on Monday following gains from the technology, utility and plastics companies, while the financial sector was soft. For the day, the index jumped 702.85 points or 1.59 percent to finish at 44,928.76 after trading between 44,540.71 and 45,219.40.

The lead from Wall Street is soft as the major averages hugged the line for much of the day before fading midday and ending in the red.

The choppy trading on Wall Street came as traders look ahead to key U.S. inflation data in the coming days.

The Labor Department is scheduled to release reports on consumer and producer inflation on Wednesday and Thursday, respectively. On the heels of last Friday's weak jobs report, the data could impact the outlook for interest rates.

Traders are also keeping an eye on developments in the Middle East, where Iran and Oman are reportedly close on a deal regarding the Strait or Hormuz but Tehran has indicated it is resisting talks with the U.S.

Crude oil prices skyrocketed as a result on Monday as expectations of an early reopening of the Strait of Hormuz began to fade, increasing concerns of military re-escalation. West Texas Intermediate crude for September delivery was up $4.07 or 5.21 percent at $82.25 per barrel.