Taipei: Shares in Taiwan closed higher, but gains were limited on Monday, the first trading session after the nine-day Lunar New Year holiday, as renewed concerns over U.S. tariff policies emerged. This followed U.S. President Donald Trump’s imposition of new global duties after a Supreme Court ruling against his “reciprocal” tariffs, according to market dealers.
According to Focus Taiwan, the Taiex, the Taiwan Stock Exchange’s benchmark index, ended up 167.55 points, or 0.50 percent, at 33,773.26, with turnover totaling NT$902.08 billion (US$28.68 billion). The market saw a sharp increase of over 600 points in the early session, driven by the electronics sector, which was buoyed by gains in U.S. tech stocks during the Lunar New Year holiday. However, profit-taking in contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) later reduced the Taiex’s gains.
Hua Nan Securities analyst Kevin Su noted that investors were wary of uncertainties related to Trump’s tariffs. As the index climbed, they rushed to secure profits. TSMC, which holds more than 40 percent of the total market value, saw a late session sell-off, falling 0.78 percent to close at NT$1,900.00. This decline from an intraday high of NT$1,935.00 cost the Taiex about 280 points, with the electronics index up only 0.09 percent.
Other semiconductor stocks like MediaTek Inc. and ASE Technology Holding Co. also saw declines. However, memory chip suppliers benefited from strong buying due to a supply shortage, with Winbond Electronics Corp. and Nanya Technology Corp. seeing significant gains.
The tech sector also saw gains in power management solution provider Delta Electronics Inc. and Yageo Corp., which experienced a notable rise.
Su highlighted that when funds moved away from large-cap chip stocks like TSMC, investors turned to the financial sector, which saw substantial growth. Companies such as CTBC Financial Holding Co., KGI Financial Holding Co., and others in the financial sector experienced gains.
Old economy stocks also benefited from rotational buying, with Nan Ya Plastics Corp. and Formosa Plastics Corp. seeing positive movement. Food brands like Uni-President Enterprises Corp. and Wei Chuan Foods Corp. also experienced gains.
Su advised investors to keep an eye on Nvidia Corp’s upcoming investor conference, which could impact tech stocks.
According to the TWSE, foreign institutional investors bought a net NT$8.35 billion of shares on the main board on Monday.