Taipei: Shares in Taiwan closed more than 1,000 points higher Friday with AI-related stocks in focus amid improved sentiment after U.S. President Donald Trump cancelled planned strikes against Iran, saying a ceasefire agreement is expected as soon as this weekend, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, closed up 1,019.58 points, or 2.36 percent, at 44,169.04 after trading between 43,587.63 and 44,798.88. Turnover totaled NT$1.12 trillion (US$35.37 billion).
According to Focus Taiwan, Cathay Futures Consultant analyst Tsai Ming-han noted that Trump's comments indicated a desire to end the conflict with Iran, which could alleviate inflation pressures. This sentiment was reflected in the U.S. markets, with a 1.86 percent increase on the Dow Jones Industrial Average and a 2.54 percent rise on the Nasdaq index.
In Taipei, electronics heavyweights, particularly in the semiconductor sector, mirrored this optimism towards AI development. Taiwan Semiconductor Manufacturing Co. (TSMC), a key player providing advanced AI chips, saw its shares rise 2.67 percent to NT$2,310.00, contributing significantly to the Taiex's rise. Other notable performers included Memory chip supplier Nanya Technology Corp. and IC packaging firm ASE Technology Holding Co.
The tech sector witnessed gains across various companies, with power management solution provider Delta Electronics Inc. and iPhone assembler Hon Hai Precision Industry Co. also experiencing upward movements. Select raw material stocks aligned with the Taiex's rise, with notable increases in the petrochemical index and companies like Nan Ya Plastics Corp. and Formosa Plastics Corp.
Steel manufacturers such as China Steel Corp. and Tung Hon Steel Corp. also saw their shares rise. However, the financial sector presented a mixed picture, with E. Sun Financial Holding Co. gaining while others like Fubon Financial Holding Co. experienced losses.
Tsai added that the Taiex might face technical resistance at the 45,000-point level, suggesting a need for consolidation. The upcoming U.S. Federal Reserve policymaking meeting is also anticipated as a critical event for market watchers.
According to the Taiwan Stock Exchange, foreign institutional investors actively participated, buying a net NT$28.69 billion of shares on the main board Friday.