Taiwan Stock Market Due For Profit Taking On Thursday

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(RTTNews) – The Taiwan stock market has climbed higher in four straight sessions, advancing more than 470 points or 2.8 percent along the way. The Taiwan Stock Exchange now sits just beneath the 17,560-point plateau although investors may cash in on Thursday.

The global forecast for the Asian markets suggests consolidation on inflation concerns and a drop in crude oil prices. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The TSE finished slightly higher on Wednesday following mixed performances from the financial shares and the technology stocks.

For the day, the index rose 18.29 points or 0.10 percent to finish at 17,559.65 after trading between 17,489.87 and 17,575.44.

Among the actives, Cathay Financial was up 0.17 percent, while Mega Financial climbed 0.89 percent, Fubon Financial dipped 0.14 percent, First Financial collected 0.22 percent, E Sun Financial jumped 1.30 percent, Taiwan Semiconductor Manufacturing Company rose 0.16 percent, Hon Hai Precision advanced 0.93 percent, Largan Precision added 0.49 percent, Catcher Technology retreated 1.21 percent, MediaTek tanked 2.04 percent, Delta Electronics fell 0.38 percent, Formosa Plastics lost 0.47 percent, Taiwan Cement was down 0.20 percent and United Microelectronics Corporation, CTBC Financial, Asia Cement and Uni-President Enterprises were unchanged.

The lead from Wall Street is broadly negative as the major averages opened slightly lower on Wednesday but saw the losses accelerate as the day progressed to finish solidly under water.

The Dow tumbled 240.04 points or 0.66 percent to finish at 36,079.94, while the NASDAQ plunged 263.84 points or 1.66 percent to close at 15,622.71 and the S&P 500 sank 38.54 points or 0.82 percent to end at 4,646.71.

Concerns about inflation contributed to the weakness on Wall Street after the Labor Department released a report showing consumer prices increased by more than expected in October, lifting the annual rate of price growth to its highest level in over thirty years.

The acceleration in the rate of consumer price inflation raised concerns about the outlook for interest rates even though the Federal Reserve has signaled it will not be in a hurry to begin raising rates.

Also, a separate report from the Labor Department showed another modest decrease in first-time claims for U.S. unemployment benefits last week.

Crude oil prices declined sharply on Wednesday, snapping a three-day winning streak after data showed an increase in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for December ended down by $2.81 or 3.3 percent at $81.34 a barrel.