Renewed Selling Pressure Expected For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has moved higher in two of three trading days since the end of the five-day losing streak in which it had plunged more than 740 points or 4.5 percent. The Taiwan Stock Exchange now rests just beneath the 16,520-point plateau although it's likely to head south again on Friday.

The global forecast for the Asian markets remains soft on concerns over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The TSE finished modestly higher on Thursday following mixed performances from the financial shares, technology stocks and cement companies.

For the day, the index improved 69.88 points or 0.42 percent to finish at 16,516.66 after trading between 16,264.65 and 16,550.11.

Among the actives, Cathay Financial collected 0.44 percent, while Mega Financial lost 0.42 percent, CTBC Financial sank 0.64 percent, E Sun Financial eased 0.20 percent, Taiwan Semiconductor Manufacturing Company rose 0.37 percent, United Microelectronics Corporation fell 0.34 percent, Hon Hai Precision advanced 0.95 percent, Largan Precision jumped 1.81 percent, Catcher Technology retreated 1.47 percent, MediaTek tanked 2.18 percent, Delta Electronics shed 0.57 percent, Novatek Microelectronics dipped 0.26 percent, Formosa Plastics slumped 1.36 percent, Nan Ya Plastics declined 1.20 percent, Asia Cement perked 0.13 percent, Taiwan Cement skidded 1.11 percent, China Steel was down 0.93 percent and First Financial and Fubon Financial were unchanged.

The lead from Wall Street is negative as the major averages opened higher on Thursday but quickly turned lower and finished near session lows.

The Dow tumbled 290.91 points or 0.84 percent to finish at 34,474.83, while the NASDAQ slumped 157.70 points or 1.17 percent to close at 13,316.93 and the S&P 500 sank 33.97 points or 0.77 percent to end at 4,370.36.

The weakness on Wall Street came as investors continue to digest Wednesday's Federal Reserve minutes, which suggest the central bank will hold interest rates higher for longer to fight inflation.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits saw a modest decline last week. Also, the Federal Reserve Bank of Philadelphia said its manufacturing index saw a big jump in August.

Crude oil futures were up on Thursday, snapping a three-session losing streak on news of stimulus measures from China's central bank. West Texas Intermediate Crude oil futures for September climbed $1.01 or 1.3 percent at $80.39 a barrel.

Closer to home, Taiwan will see Q2 figures for gross domestic product later today, with forecasts suggesting an expansion of 1.45 percent on year following the 2.98 percent contraction in the three months prior.