Taiwan Stock Market Due For Consolidation

(RTTNews) - The Taiwan stock market has finished higher in five straight sessions, gathering more than 530 points or 3.3 percent along the way. The Taiwan Stock Exchange now rests just above the 15,460-point plateau although it's likely due for profit taking on Thursday.

The global forecast for the Asian markets suggests consolidation over the outlook for interest rates and likely selling in the retail sector. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The TSE finished modestly higher on Wednesday following mixed performances from the financial hares, technology stocks and plastic companies.

For the day, the index gathered 44.88 points or 0.29 percent to finish at 15,465.45 after trading between 15,390.84 and 15,475.89.

Among the actives, Cathay Financial collected 0.74 percent, while Mega Financial dipped 0.14 percent, CTBC Financial jumped 1.43 percent, Fubon Financial gained0.83 percent, First Financial and Asia Cement both advanced 0.94 percent, E Sun Financial eased 0.18 percent, Taiwan Semiconductor Manufacturing Company added 0.38 percent, United Microelectronics Corporation shed 0.46 percent, Hon Hai Precision strengthened 1.35 percent, Largan Precision declined 1.43 percent, Catcher Technology lost 0.56 percent, MediaTek fell 0.42 percent, Formosa Plastics sank 0.21 percent, Nan Ya Plastics improved 0.57 percent, Taiwan Cement rallied 1.65 percent and Delta Electronics was unchanged.

The lead from Wall Street is negative as the major averages opened lower on Wednesday, pared the losses as the day progressed but still ended firmly in the red.

The Dow dropped 171.69 points or 0.50 percent to finish at 33,980.32, while the NASDAQ tumbled 164.43 points or 1.25 percent to close at 12,938.12 and the S&P 500 slumped 31.16 points or 0.72 percent to end at 4,274.04.

The failed recovery attempt came after the Federal Reserve released the minutes of its latest monetary policy meeting, which some traders seemed to interpret as pointing to a slowdown in the pace of interest rate hikes. But the Fed minutes reaffirmed the central bank's plans to continue raising interest rates in an effort to return inflation to its 2 percent objective.

Quarterly results from Target (TGT) also weighed on the markets after reporting earnings fell well short of estimates as it cut prices in an effort to reduce excess inventory.

Traders were also reacting to a Commerce Department report showing U.S. retail sales came in flat in July amid pullbacks in gas station and auto sales.

Crude oil prices climbed higher Wednesday, lifted by data showing declines in crude and gasoline inventories in the U.S. last week. West Texas Intermediate Crude oil futures for September ended higher by $1.58 or 1.8 percent at $88.11 a barrel.