Taipei: Shares in Taiwan ended the week on a positive note, with the Taiex, the benchmark index of the Taiwan Stock Exchange, climbing 356.23 points, or 0.77 percent, to close at 46,331.45. The market's performance was buoyed by anticipation of a significant speech from Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Policy Symposium, where insights into the Fed's interest rate policy were expected to be shared, according to dealers.
According to Focus Taiwan, the Taiex experienced volatility throughout the trading session, moving between 46,070.83 and 46,574.52, with a turnover reaching NT$1.02 trillion (US$32.29 billion). Hua Nan Securities analyst Kevin Su noted that technical resistance emerged when the Taiex breached 46,402 points, prompting caution toward profit-taking among investors.
The electronics sector, a bellwether for the Taipei market, led Friday's gains, driven by strong results from Nvidia Corp. Taiwan Semiconductor Manufacturing Co. (TSMC), a contract chipmaker accounting for over 40 percent of the market's total value, increased by 0.41 percent to close at NT$2,420.00, although it retreated from a high of NT$2,445.00, impacting the Taiex by approximately 200 points. Su emphasized that while TSMC supported the market, technical challenges near NT$2,450.00 prevented sustained gains.
Other semiconductor stocks also saw movement, with MediaTek Inc., a smartphone IC designer, rising 3.10 percent to NT$3,985.00, and ASE Technology Holding Co., an IC packaging and testing firm, climbing 2.64 percent to NT$621.00. However, memory chip suppliers like Nanya Technology Corp. and Winbond Electronics Corp. faced pressure, closing down 0.18 percent and 2.42 percent, respectively, amid declines in South Korean counterparts Samsung Electronics Co. and SK Hynix Inc.
Outside the semiconductor domain, iPhone assembler and AI server manufacturer Hon Hai Precision Industry Co. gained 0.40 percent to close at NT$253.00, while Delta Electronics Inc., a power management solution provider, surged 3.39 percent to NT$1,830.00. Su pointed out that the financial sector also contributed to the Taiex's uplift, benefiting from higher U.S. bond yields that boosted financial firms' overseas investment returns. Cathay Financial Holding Co. and Fubon Financial Holding Co. rose 2.93 percent and 1.77 percent, respectively.
In contrast, the old economy sector faced challenges, with Nan Ya Plastics Corp. declining 3.08 percent to NT$220.50, influenced by losses from subsidiary Nanya Technology. Formosa Chemicals and Fibre Corp. and Uni-President Enterprises Corp. also saw declines, while Wei Chuan Foods Corp. managed a slight increase.
Su highlighted that rotational buying remains active in the local market, suggesting strong technical support for the Taiex around 45,000 points in the short term. The Taiwan Stock Exchange reported that foreign institutional investors were net buyers, acquiring NT$41.59 billion worth of shares on Friday.