Taipei: Shares in Taiwan rose Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) led the broader market higher in the wake of a rally among tech stocks in the United States overnight, dealers said. The Taiex, the Taiwan Stock Exchange’s weighted index, ended up 161.69 points, or 0.73 percent, at 22,211.59 after moving between 22,118.46 and 22,331.69. Turnover totaled NT$362.26 billion (US$12.31 billion).
According to Focus Taiwan, Iran reportedly is seeking to negotiate a ceasefire with Israel, which has eased tensions in the Middle East and prompted investors at home and abroad to trade. The Wall Street Journal cited diplomats as saying on Monday that Iran has showed signs that it seeks an end to hostilities with Israel and a resumption of negotiations on its nuclear program. In Taiwan, interest in TSMC resumed after gains seen by semiconductor stocks on the U.S. market overnight, with a 3.03 percent spike in the Philadelphia Semiconductor Index.
Following the rise of its American depositary receipts (ADRs) by 2.17 percent, TSMC shares rose 1.95 percent in Taipei to close at NT$1,045.00. The stock contributed about 160 points to the Taiex’s rise and helped the electronics index increase by 1.10 percent. Despite a stronger Taiwan dollar raising concerns over foreign exchange losses, Taiwan’s semiconductor stocks were playing catch-up with their American counterparts.
Scientech Corp., an IC assembly equipment supplier, gained 3.77 percent to end at NT$330.00, and ASIC designer Alchip Technologies Ltd. soared 6.83 percent to close at NT$2,815.00. Smartphone IC designer MediaTek Inc. gained 1.59 percent to end at NT$1,275.00, and IC packaging and testing services provider ASE Technology Holding Co. added 2.07 percent to close at NT$148.00. However, Hon Hai Precision Industry Co., an iPhone assembler and artificial intelligence maker, ended unchanged at NT$155.00.
While buying focused on the electronics sector, non-tech industries appeared mixed. Petrochemical stocks suffered steep losses following a plunge in international crude oil prices amid hopes of a ceasefire in the Middle East. The petrochemical index fell 3.91 percent, with Formosa Plastics Corp. shedding 4.00 percent to close at NT$36.00, and Nan Ya Plastics Corp. losing 5.12 percent to end at NT$28.70. Formosa Chemicals and Fibre Corp. dropped 4.40 percent to close at NT$23.90, and Formosa Petrochemical Corp. ended down 3.80 percent at NT$38.00.
Meanwhile, optimism over government investment in Taiwan’s electricity grid network led the electric machinery index to rise 0.65 percent. Fortune Electric Co. closed 4.36 percent higher at NT$551.00, and Chung-Hsin Electric and Machinery Manufacturing Corp. gained 1.23 percent to end at NT$164.00.
In contrast, the financial sector fell 0.26 percent, with Cathay Financial Holding Co. shedding 2.38 percent to close at NT$65.70, and Fubon Financial Holding Co. ending down 0.23 percent at NT$85.80.
After the day’s gains, the Taiex faces high technical hurdles ahead of 22,300 points. Market sentiment remains concerned about whether talks with the U.S. will reduce reciprocal tariffs facing Taiwan. Foreign institutional investors bought a net NT$5.41 billion in shares on the market Tuesday.