(RTTNews) – The Taiwan stock market on Friday snapped the three-day winning streak in which it had advanced more than 170 points or 1.7 percent. The Taiwan Stock Exchange now rests just above the 10,440-point plateau although it’s expected to move higher again on Monday.
The global forecast for the Asian markets is firm, thanks to the extended rebound in crude oil prices and renewed optimism about the outlook for interest rates. The European markets were down on Friday and the U.S. markets were up – and the Asian bourses figure to follow the latter lead.
The TSE finished slightly lower on Friday following losses from the financial shares and the technology stocks.
For the day, the index dipped 16.24 points or 0.16 percent to finish at 10,443.91 after trading between 10,423.40 and 10,466.34 on turnover of 99.63 billion Taiwan dollars.
Among the actives, Cathay Financial dipped 0.30 percent, while Fubon Financial was down 0.63 percent, Mega Financial eased 0.20 percent, Taiwan Semiconductor Manufacturing Company shed 0.70 percent, Largan Precision tumbled 3.09 percent, Innolux dropped 0.98 percent, AU Optronics lost 0.40 percent, Hon Hai Precision was unchanged and Taiwan Cement jumped 1.43 percent.
The lead from Wall Street is positive as stocks moved higher on Friday, extending their recent upward trend.
The Dow rose 84.65 points or 0.4 percent to 21,637.74, while the NASDAQ advanced 38.03 points or 0.6 percent to 6,312.47 and the S&P gained 11.44 points or 0.5 percent to 2,459.27. For the week, the NASDAQ surged 2.6 percent, while the Dow jumped 1 percent and the S&P climbed 1.4 percent.
The strength followed several key economic reports, with the data suggesting that the Federal Reserve will not hurry to raise interest rates.
The Commerce Department said retail sales fell for the second straight month in June, while the Labor Department said consumer prices were unchanged in June. Also, the Federal Reserve said industrial production increased more than expected in June.
The rally in crude oil prices continued Friday on a weaker dollar and the outlook for interest rates. August West Texas Intermediate crude rose 46 cents or 1 percent to $46.54 a barrel on the New York Mercantile Exchange for the session. Prices surged 5.2 percent last week.