Taipei: Shares in Taiwan closed lower following significant losses in U.S. tech stocks overnight, but the downturn was limited due to bargain hunting as the Taiex, the benchmark index of the Taiwan Stock Exchange, dipped below 46,000 points. The Taiex ended down 274.83 points, or 0.58 percent, at 46,744.16, fluctuating between 45,981.89 and 46,910.31, with a turnover totaling NT$1.02 trillion (US$31.85 billion).

According to Focus Taiwan, Hua Nan Securities analyst Kevin Su stated that with U.S. chip stocks under pressure, local electronics stocks followed suit. This was evident as the Philadelphia Semiconductor Index witnessed a 6.27 percent fall on Wednesday. Shares in Taiwan Semiconductor Manufacturing Co. (TSMC), which makes up more than 40 percent of the total market value, fell by 1.60 percent to close at NT$2,465.00. United Microelectronics Corp., a smaller counterpart of TSMC, ended down 2.07 percent at NT$165.50. Other tech sector stocks such as Hon Hai Precision Industry Co. and Delta Electronics Inc. also saw declines of 0.83 percent and 1.01 percent, respectively.

The market sentiment was affected by concerns over a hawkish stance from the U.S. Federal Reserve. Fed Chairman Kevin Warsh affirmed his commitment to a 2 percent inflation target, causing worries about tightening monetary policies. However, the Taiex showed resilience as bargain hunting emerged after dipping below the 46,000 mark. Some chip heavyweights, including those involved in ASIC development, rebounded from losses and provided support to the index. Notably, MediaTek Inc. rose by 0.23 percent, and AIchip Technologies Inc. soared by 10 percent, reaching NT$4,895.00.

Rotational buying benefited printed circuit board (PCB)-related stocks, with Compeq Manufacturing Co. rising 3.86 percent and Elite Material Co. increasing by 2.17 percent. Select old economy stocks that have expanded into electronic material production also saw gains, with Formosa Plastics Corp. and Formosa Chemical and Fibre Corp. jumping 10 percent. Nan Ya Plastics Corp. rose by 7.65 percent as well.

In the textile sector, hopes of boosted sales from the FIFA World Cup 2026 lifted Eclat Textile Co. by 1.12 percent and Far Eastern New Century Corp. by 0.35 percent. However, the financial sector faced a decline of 1.06 percent, with Fubon Financial Holding Co. shedding 2.45 percent and Cathay Financial Holding Co. ending down 1.55 percent.

Hua Nan Securities analyst Kevin Su advised investors to monitor the upcoming May sales reports, expected by July 10, for further insights into the market fundamentals. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$89.05 billion of shares on the main board Thursday.