Taipei-Shares in Taiwan closed higher Thursday driven by gains posted by large-cap stocks and the U.S. Federal Reserve's decision a day earlier to raise short-term interest rates for the third time this year.
Following the Fed's increase of its benchmark interest rate by a quarter of a percentage point, the market opened up 23.90 points Thursday at 10,494.60 and briefly breached the 6-month moving average of 10,545 points before giving up some of those early gains.
The Taiwan Stock Exchange's main index closed up 67.31 points, or 0.64 percent, at 10,538.01, after moving between 10,494.60 and 10,577.53 points. Turnover totaled NT$112.19 billion (US$3.74 billion).
With the exception of paper and pulp stocks which ended the day 0.13 percent lower, all major stock categories gained ground, with foodstuff shares rising the most at 1.16 percent, followed by financial stocks at 0.78 percent.
Shares in manufacturing giants Hon Hai Precision Industry Co. and contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) staged a rebound after suffering losses caused by the heavy selling of foreign institutional investors in recent sessions.
Hon Hai, an assembler of iPhones and iPads, rose 1.28 percent to end at NT$94.9, while TSMC gained 1.54 percent to close at NT$230.50.
In the financial sector, Cathay Financial Holding Co. (???) and Shin Kong Financial Holding Co. both gained.
Analysts said while turnover exceeded NT$110 billion Thursday, the market will only be able to continue its upward momentum if turnover reaches about NT$130 billion.
Foreign institutional investors bought a net NT$2.88 billion worth of shares on the main board on Thursday, according to the Taiwan Stock Exchange.
Source: Focus Taiwan News Channel