2/15/2012 7:14 PM ET
(RTTNews) – The Taiwan stock market has alternated between positive and negative finishes through the last four sessions since the end of the 11-day winning streak in which it had surged more than 750 points or 11 percent. Now at a six-month closing high, the Taiwan Stock Exchange finished just above the 8,000-point plateau, although traders may elect to lock in gains when the market opens on Thursday.
The global forecast for the Asian markets is mixed to flat as optimism over the debt situation in Europe is being replaced by lingering uncertainty following reports that the second bailout for Greece could be delayed. However, fairly upbeat economic data from the United States is likely to limit any downside. The European markets finished mixed but little changed and the U.S. bourses ended in the red – and the Asian markets figure to split the difference.
The TSE finished sharply higher on Wednesday following gains from the construction, technology, textile, finance, paper, plastic and cement sectors.
For the day, the index surged 121.16 points or 1.53 percent to finish at 8,005.24 after trading between 7,902.08 and 8,011.87 on turnover of 157.695 billion Taiwan dollars.
Among the gainers, Taiwan Semiconductor Manufacturing Co. climbed 1.55 percent and Hon Hai Precision Industry jumped 2.48 percent.
The lead from Wall Street suggests mild consolidation as stocks saw some volatility over the course of the trading day on Wednesday but eventually ended the session mostly lower amid lingering uncertainty about the financial situation in Europe. Profit taking may also have contributed to the pullback by the markets.
Remarks from Chinese officials contributed to early strength among stocks, with Chinese Premier Wen Jiabao saying his country would continue to invest in European government debt to help resolve the ongoing debt crisis. People’s Bank of China Governor Zhou Xiaochuan echoed those remarks and expressed confidence that the challenges faced by Europe can be resolved.
However, buying interest waned amid lingering concerns about Greece, with reports suggesting that the second bailout for the debt-plagued nation could be delayed.
In U.S. economic news, the New York Federal Reserve reported that regional manufacturing activity continued to expand in February, with the index of activity in the sector rising to its highest level in more than a year. A separate report from the Fed showed that U.S. industrial production was unchanged in January, as an increase in manufacturing output was offset by declines in mining and utilities output.
