Taiwan Stock Market May Open Under Pressure

(RTTNews) - The Taiwan stock market on Thursday ended the three-day winning streak in which it had collected more than 20 points or 0.2 percent. The Taiwan Stock Exchange now rests just beneath the 10,735-point plateau and it may extend its losses on Friday.

The global forecast for the Asian markets is mostly positive thanks to optimism over U.S. tax reform, plus a bump in crude oil prices. The European and U.S. markets were up, and the Asian markets are expected to follow suit.

The TSE finished modestly lower on Thursday following losses from the financial shares, technology stocks and cement companies.

For the day, the index fell 15.81 points or 0.15 percent to finish at 10,734.76 after trading between 10,756.51 and 10,716 52 on turnover of 109.99 billion Taiwan dollars.

Among the actives, Cathay Financial slipped 0.81 percent, while Mega Financial fell 0.83 percent, Fubon Financial eased 0.21 percent, Taiwan Semiconductor Manufacturing Company shed 0.84 percent, Hon Hai Precision lost 0.45 percent, Largan Precision skidded 1.15 percent, AU Optronics added 0.80 percent, Innolux retreated 0.36 percent, Taiwan Cement dipped 0.15 percent, Taiwan Steel gained 0.48 percent and China Steel was down 0.20 percent.

The lead from Wall Street is cautiously optimistic as stocks were positive for most of Thursday's trade, although the tech-heavy NASDAQ faded in the end.

The NASDAQ fell 7.12 points or 0.11 percent to 6,556.77, but the Dow rose 71.40 points or 0.31 percent to 23,400.86 and the S&P 500 inched up 3.25 points or 0.13 percent to 2,560.40.

The mixed close came despite positive sentiment generated by news that House Republicans voted to approve a Senate-passed budget resolution, taking a key step toward tax reform.

Traders were also reacting to the European Central Bank's monetary policy announcement as ECB President Mario Draghi said it will reduce the size of its asset purchases at the start of next year while extending them for nine months, as expected.

In economic news, the Labor Department noted a rebound in initial jobless claims in the week ended October 21. Also, the National Association of Realtors said pending home sales were unexpectedly flat in September.

Crude oil futures rose Thursday, approaching multi-month highs amid optimism the global supply glut will end in 2018. December WTI oil climbed 46 cents or 0.9 percent to $52.64/bbl. A strong dollar prevented a larger advance.