Taipei: Shares in Taiwan closed higher Wednesday led by AI-related stocks, while turnover was limited ahead of U.S. consumer price index (CPI) data due later in the day, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 397.35 points, or 0.88 percent, at 45,518.07. Turnover totaled NT$858.73 billion (US$26.66 billion), below the average of NT$892.1 billion for the previous five sessions.
According to Focus Taiwan, despite pressures on many U.S. stocks due to higher crude oil prices amid tensions in the Middle East, AI-related stocks in Taiwan saw gains. This was reflected in a 0.87 percent increase on the Philadelphia Semiconductor Index, as noted by Hua Nan Securities analyst Kevin Su. Taiwan's AI-related stocks, particularly TSMC (Taiwan Semiconductor Manufacturing Co.) and Hon Hai Precision Industry Co., benefited from last-minute buying, further boosting the Taiex.
Contract chipmaker TSMC, accounting for over 40 percent of the total market value, rose 0.84 percent to close at NT$2,415.00, contributing about 160 points to the Taiex. Hon Hai, known globally as Foxconn, gained 2.66 percent to end at NT$270.00 as investors anticipated positive leads from an upcoming investor conference.
Other major AI server suppliers also attracted strong buying, with Compal Electronics Inc. soaring 10 percent to close at NT$39.90, and Quanta Computer Inc. rising 3.17 percent to end at NT$325.50. Among semiconductor stocks, shares in TSMC's ASIC design subsidiary Global Unichip Corp. rose 3.53 percent to close at NT$5,130.00, and chipmaker's IC assembly equipment supplier Scientech Corp. added 4.56 percent to end at NT$734.00.
However, not all stocks followed this upward trend. Smartphone IC designer MediaTek Inc. lost 0.12 percent to close at NT$4,015.00, and power management solution provider Delta Electronics Inc. ended down 0.83 percent at NT$1,790.00. Old economy stocks showed mixed results, although some machinery makers posted gains due to strength in robotics production. Hiwin Mikrosystem Corp. closed up 3.89 percent at NT$227.00, and Airtac International Group ended 2.24 percent higher at NT$1,595.00.
In other sectors, Formosa Plastics Corp. rose 1.08 percent to close at NT$56.20, though Nan Ya Plastics Corp. ended down 0.53 percent at NT$189.00. China Steel Corp. closed unchanged at NT$19.75, while Tung Ho Steel Corp. ended down 1.99 percent at NT$83.80. In finance, Cathay Financial Holding Co. closed up 0.10 percent at NT$99.70, while Fubon Financial Holding Co. ended down 0.78 percent at NT$127.00.
Despite the Taiex's gains, turnover did not expand significantly, as many investors preferred to stay on the sidelines, awaiting the July CPI for further insights into the Federal Reserve's potential actions. Foreign institutional investors purchased a net NT$11.02 billion of shares on the main board Wednesday, as reported by the Taiwan Stock Exchange.