The Taiwan stock market headed south again on Friday, one session after it had ended the two-day slide in which it had fallen almost 55 points or 0.5 percent. The Taiwan Stock Exchange now rests just beneath the 10,730-point plateau although it may bounce higher again on Monday.
The global forecast for the Asian markets is positive thanks to optimism over U.S. tax reform and a bump in crude oil prices. The European and U.S. markets were up on Friday and the Asian markets figure to follow that lead.
The TSE finished modestly lower on Friday following mixed performances from the financial shares and the technology stocks.
For the day, the index dipped 31.41 points or 0.29 percent to finish at 10,728.88 after trading between 10,702.56 and 10,753.77 on turnover of 124.57 billion Taiwan dollars.
Among the actives, Taiwan Semiconductor Manufacturing Company shed 0.63 percent, while AU Optronics picked up 0.40 percent, Catcher Technology was up 0.50 percent, Hon Hai Precision lost 0.88 percent, Innolux jumped 0.71 percent, Largan Precision skidded 2.96 percent, Cathay Financial dropped 0.91 percent, Mega Financial was unchanged, Fubon Financial collected 0.11 percent, Nan Ya Plastics added 0.40 percent, Formosa Chemicals gained 0.43 percent and Taiwan Steel advanced 0.43 percent.
The lead from Wall Street is upbeat as stocks moved higher on Friday, allowing the major averages to hit fresh record closing highs.
The Dow advanced 165.59 points or 0.71 percent to 23,328.63, while the NASDAQ rose 23.99 points or 0.36 percent to 6,629.04 and the S&P was up 13.11 points or 0.51 percent to 2,575.21. For the week, the Dow added 2 percent, while the NASDAQ gained 0.4 percent and the S&P was up 0.9 percent.
The strength was partly in reaction to news that Senate Republicans approved a budget resolution to advance their tax reform plan. The plan includes a reduction in the corporate tax rate to 20 percent from 35 percent and a consolidation in personal income tax brackets to three from seven.
In earnings news, General Electric (GE) reported Q3 earnings well below estimates and slashed its full-year earnings forecast. Procter & Gamble (PG) saw solid earnings but on sales that missed estimates. PayPal (PYPL) reported Q3 results that beat estimates on both the top and bottom lines.
Crude oil futures rose Friday after U.S. rig count fell for a third consecutive week. December WTI oil settled at $51.84/bbl, up 33 cents or 0.6 percent. November WTI oil was up 18 cents or 0.4 percent to $51.47/bbl on expiration day.
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