Taipei: Shares in Taiwan closed higher Wednesday, breaking through technical resistance ahead of the 240-day moving average of 22,300 points, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) extended gains amid optimism over U.S.-China trade talks, dealers said.
According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 227.96 points, or 1.02 percent, at 22,470.10 after moving between 22,294.60 and 22,470.10. Turnover totaled NT$395.17 billion (US$13.22 billion).
Hua Nan Securities analyst Kevin Su noted the increased willingness of investors to chase prices due to high hopes for a positive conclusion to the U.S.-China negotiations. The local main board followed U.S. markets, where tech stocks continued to rise overnight after U.S. Commerce Secretary Howard Lutnick commented positively on the talks with China.
TSMC, the most heavily weighted stock on the local stock market, played a significant role in pushing the Taiex higher. After its Americ
an depositary receipts rose 2.64 percent overnight, TSMC gained 1.92 percent to close at NT$1,065.00, contributing about 160 points to the Taiex rise.
Other semiconductor stocks also showed gains. ASE Technology Holding Co. rose 2.11 percent to end at NT$145.50, and Scientech Corp. added 1.48 percent to close at NT$309.00. However, MediaTek Inc. fell 1.50 percent to end at NT$1,315.00.
Optimism over artificial intelligence development boosted AI-related stocks. Asia Vital Components Co. rose 3.28 percent to close at NT$724.00, while cloud services supplier Wiwynn Corp. gained 1.61 percent to end at NT$2,525. Hon Hai Precision Industry Co. and Quanta Computer Inc. had mixed performances.
In the financial sector, which rose 0.56 percent, Cathay Financial Holding Co. rose 3.64 percent to close at NT$68.40, and Fubon Financial Holding Co. gained 2.74 percent to end at NT$90.10. Old economy stocks showed mixed results, with Evergreen Marine Corp. and Wan Hai Lines Ltd. gaining, while Shihlin Paper Corp. and Chu
ng Hwa Pulp Corp. fell.
Su highlighted the importance of the upcoming release of U.S. May inflation data for clues about the Federal Reserve’s policy direction. Foreign institutional investors bought a net NT$7.93 billion worth of shares on the main board Wednesday.