Taipei: Taiwan stocks rebounded on Tuesday after a significant drop of 4 percent on Monday, though concerns over Middle East tensions continued to keep investors cautious, despite falling international oil prices. The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 661.45 points, or 2.06 percent, at 32,771.87, with turnover totaling NT$702.81 billion (US$22.08 billion).
According to Focus Taiwan, the market was buoyed by U.S. President Donald Trump's suggestion that the conflict with Iran could be resolved soon, coupled with a 6 percent overnight drop in international crude prices. This led to accelerated buying in early trade, which sent the index up 1,146 points to the day's high. However, Mega International Investment Services analyst Alex Huang noted that some investors took advantage of the initial upturn to secure profits, wary that geopolitical uncertainties could potentially lead to more losses in the future.
Taiwan Semiconductor Manufacturing Co. (TSMC), a major player accounting for over 40 percent of the total market value, saw a rise of 2.21 percent, ending at NT$1,850.00 after reaching NT$1,890.00, which cost the Taiex around 320 points. Meanwhile, smartphone IC designer MediaTek Inc. increased by 2.40 percent to close at NT$1,705.00, and IC packaging and testing services provider ASE Technology Holding Co. climbed 4.84 percent to end at NT$335.50.
Conversely, AI server and iPhone assembler Hon Hai Precision Industry Co. experienced a slight decline of 0.48 percent, closing at NT$209.50, while memory chip supplier Nanya Technology Corp. soared to a 10 percent increase, the maximum daily rise, finishing at NT$231.00. Huang highlighted that non-tech stocks largely lagged behind their tech counterparts, with fuel and gas suppliers facing steep losses due to the drop in crude oil prices. Formosa Petrochemical Corp. and The Great Taipei Gas Corp. both fell by 10 percent, the maximum daily decline, closing at NT$61.40 and NT$31.05, respectively.
In the financial sector, which saw a 0.53 percent rise, Cathay Financial Holding Co. closed up 1.57 percent at NT$71.10, in contrast to Yuanta Financial Holding Co., which lost 0.68 percent to end at NT$43.85. Foreign institutional investors sold a net NT$25.16 billion of shares on the main board Tuesday, indicating a cautious approach amid ongoing uncertainty.