RTTNews - The Taiwan stock market has finished lower now in back-to-back sessions since the end of the six-day winning streak that saw it collect more than 385 points or 5.8 percent on its way to a fresh eight-month closing high. The Taiwan Stock Exchange fell below the 6,700-point plateau - but now ahead of the four-day weekend holiday marking the Dragon Boat Festival, the Taiwan Stock Exchange is tipped to move back to the upside on Wednesday.
The global forecast for the Asian markets is cautiously optimistic, although the positive sentiment could be damaged by the test-firing of another missile on Wednesday morning by North Korea. The markets get a boost from better than expected economic data out of the United States, and retailers also are forecast to trade higher. The European markets finished mostly higher and the U.S. markets ended sharply higher - and the Asian bourses are also tipped to trade in the green.
The TSE finished modestly lower on Tuesday, thanks to continued profit taking from last week's winning streak. Construction stocks fell under heavy selling pressure throughout the session, while the financial and technology shares also ended lower.
For the day, the index lost 51.35 points or 0.76 percent to close at 6,683.11 after trading between 6,649.95 and 6,830.24 on turnover of 199.72 billion Taiwan dollars. There were 1,551 decliners and 662 gainers, with 100 stocks finishing unchanged.
Among the decliners, Farglory Land Development, Elan Microelectronics Corp. and Wintek Corp. all were limit-down and United Microelectronics Corp fell 0.39 percent.
Finishing higher, Taiwan Semiconductor Manufacturing Co was up 1.62 percent, Nan Ya Plastics rose 2.41 percent and China Steel added 1.9 percent.
The lead from Wall Street is broadly positive as stocks staged a substantial rally over the course of the trading day on Tuesday after seeing some initial weakness, snapping a four-day losing streak. The major averages finished near their best levels of the day, bolstered by some positive news on the health of the U.S. consumer.
The Conference Board's reading on consumer confidence for May improved by far more than expected, reaching its highest level since September. The data generated some optimism about the outlook for consumer spending, which accounts for nearly two-thirds of economic activity. The consumer confidence figure helped to bolster some of the day's risk appetite, as reflected by the surge in equities following the release of the report.
Earlier in the day, disappointing housing price data contributed to the initial weakness. Traders largely shrugged off the data, however, citing the lagging nature of the numbers and choosing to focus on the encouraging consumer confidence data.
Retail stocks enjoyed a considerable run-up on the day, benefiting from the better than expected consumer confidence data. The S&P Retail Index closed up 4 percent, although it remains well off the seven-month highs that it set earlier this month.
The major averages moved roughly sideways in the second half of the day, holding onto strong gains. The Dow closed up 196.17 points or 2.4 percent at 8,473.49, the NASDAQ rose 58.42 points or 3.5 percent to 1,750.43 and the S&P 500 closed up 23.33 points or 2.6 percent at 910.33.
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