The Taiwan stock market has finished lower in two of three trading days since the end of the eight-day winning streak in which it had soared almost 450 points or 4.2 percent. The Taiwan Stock Exchange now rests just above the 11,145-point plateau although it figures to rebound on Monday.
The global forecast for the Asian markets is upbeat thanks to solid earnings news and economic data, as well as another jump in crude oil prices. The European and U.S. market were firm and the Asian markets are expected to follow suit.
The TSE finished slightly lower on Friday following losses from the financial shares and mixed performances from the technology and steel sectors.
For the day, the index slipped 18.85 points or 0.17 percent to finish at 11,147.10 after trading between 11,089.48 and 11,178.30 on turnover of 135.94 billion Taiwan dollars.
Among the actives, Taiwan Semiconductor Manufacturing Company dropped 1.16 percent, while Catcher Technology gained 0.62 percent, AU Optronics jumped 1.78 percent, Largan Precision spiked 2.37 percent, China Steel plummeted 2.03 percent, Taiwan Steel Union climbed 1.67 percent, Formosa Plastics advanced 1.97 percent, Formosa Petrochemical added 0.81 percent, Cathay Financial skidded 1.62 percent, Fubon Financial lost 0.37 percent and Mega Financial and Hon Hai Precision were unchanged.
The lead from Wall Street is broadly positive as stocks showed a significant move to the upside on Friday as all three of the major averages found new record closing highs.
The Dow added 223.92 points or 0.85 percent to 26,616.71, while the NASDAQ spiked 94.61 points or 1.28 percent to 7,505.77 and the S&P jumped 33.62 points or 1.18 percent to 2,872.87. For the week, the Dow surged 2.1 percent, the NASDAQ soared 2.3 percent and the S&P jumped 2.2 percent.
The strength on Wall Street reflected the latest earnings news as Intel (INTC) and Honeywell (HON) in particular impressed with results.
In economic news, the Commerce Department noted slower than expected economic growth in the fourth quarter, although final sales and final sales to domestic purchasers both surged. The Commerce Department also observed a bigger than expected increase in durable goods orders in December.
Traders also reacted to President Donald Trump’s speech at the World Economic Forum in Davos, Switzerland. Trump touted the progress made by the economy and the stocks markets since his election and reiterated his pledge to put “America first.”
Crude oil prices rallied to fresh four-year highs Friday, extending strong weekly gains even as U.S. drillers continued to add rigs. WTI light sweet oil was up 63 cents or 1 percent to $66.14/bbl for a gain of 4.5 percent on the week.