Taiwan Stock Market Due For Consolidation

(RTTNews) - The Taiwan stock market has tracked higher in five straight sessions, surging more than 2,880 points or 6.4 percent along the way. The Taiwan Stock Exchange now sits just above the 47,800-point plateau although it's likely to run out of steam on Wednesday.

The global forecast for the Asin markets is murky, with profit taking likely offset by sinking oil prices. The European and U.S. markets were mixed and little changed and the Asian markets are expected to follow that lead.

The TSE finished modestly higher on Tuesday as gains from the technology and semiconductor stocks were capped by weakness from the financial and plastics companies.

For the day, the index rose 81.33 points or 0.17 percent to finish at the daily low of 47,800.17 after opening higher and peaking at 48,601.53.

The lead from Wall Street offers little clarity as the major averages opened mixed on Tuesday, faded midday but recover to end on oppositive sides of the line and largely unchanged.

The Dow sank 185.14 points or 0.36 percent to finish at 51,863.69, while the NASDAQ gained 122.18 points or 0.45 percent to close at a fresh record high of 27,244.28 and the S&P 500 eased 0.06 points or 0.00 percent to end at 7,764.64.

The early choppiness came as investors digested comments from U.S. President Donald Trump, who told the United Nations General Assembly that a deal with Iran may be possible after the midterm elections but said that he may instead just decide to "annihilate the Islamic Republic." He also spoke of setting up a "large military presence" on Greenland.

Stocks slumped in reaction but recovered later in the day as energy prices continued to fall, easing inflation concerns and the possibility of another interest rate hike from the Federal Reserve.

Crude oil prices fell on Tuesday, losing for a fifth straight session amid hopes that diplomatic efforts may end the conflict between U.S. and Iran. West Texas Intermediate crude for November delivery was down $5.20 or 5 percent to $90.50 per barrel.

Closer to home, Taiwan will release August data for industrial production and money stock later today; in July, industrial output jumped 25.61 percent on year, while the M2 money stock was up 7.42 percent.