Taipei: Shares in Taiwan closed higher Tuesday as major semiconductor stocks recouped earlier losses on a rally in South Korea, while turnover remained moderate with many investors on the sidelines, awaiting new leads, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 407.14 points, or 0.91 percent, at the day's high of 45,169.46, off a low of 44,210.31. Turnover totaled NT$696.05 billion (US$21.88 billion).

According to Focus Taiwan, buying in semiconductor stocks emerged in the second half of the morning session and continued into the end of trading as investors took cues from a rally in Seoul. Notably, gains were seen in memory chip supplier SK Hynix Inc., which influenced Taiwanese memory chip firms to rebound from earlier weakness. Nanya Technology Corp. rose 1.80 percent to close at NT$510.00, while Winbond Electronics Corp. increased by 1.13 percent to end at NT$179.00.

Mega International Investment Services analyst Alex Huang noted that bargain hunters also picked up TSMC (Taiwan Semiconductor Manufacturing Co.), which provided a significant boost to the Taiex. TSMC, a contract chipmaker accounting for over 40 percent of total market value, gained 1.05 percent to close at NT$2,400.00. This stock's recovery from the day's low helped the Taiex recoup about 400 points.

In contrast, smartphone IC designer MediaTek Inc. lost 0.80 percent to end at NT$328.00, although the stock still came off its low. Meanwhile, iPhone assembler and AI server maker Hon Hai Precision Industry Co. closed down 0.21 percent at NT$243.00, while Quanta Computer Inc., another AI server producer, gained 1.08 percent to end at NT$328.50.

Despite the gains, turnover remained limited as many market participants awaited new leads for direction. Huang mentioned that upcoming events such as Nvidia's earnings release and Fed Chairman Kevin Warsh's speech at the Jackson Hole Economic Symposium are worth watching.

The petrochemical industry also saw gains, with Nan Ya Plastics Corp. climbing 4.72 percent to close at NT$188.50 and affiliate Formosa Plastics Corp. ending up 1.40 percent at NT$57.80. Robotics-related stocks such as machinery makers Airtac International Group rose 1.74 percent to close at NT$1,460.00, while Hiwin Technologies Corp. ended up 0.58 percent at NT$345.50.

Financial stocks further supported the Taiex's gains, led by Fubon Financial Holding Co., which surged 7.20 percent to close at NT$141.50 after reporting a 65.25 percent return from its stock investments in Taiwan in the first half of the year. The financial index rose 2.31 percent, contributing further to the Taiex's upward movement.

Huang cautioned that despite the day's rebound, it was too early to determine whether the Taiex had emerged from consolidation. He identified the next technical hurdles ahead of the 10-day moving average of 45,327 points.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$786.58 million of shares on the main board Tuesday.