Taipei: Shares in Taiwan closed lower Monday as selling was triggered by losses on the U.S. markets at the end of last week on poor job data for July, but the market did recoup some of the early losses, dealers said. The Taiex, the Taiwan Stock Exchange’s weighted index, edged down 55.44 points, or 0.24 percent, at the day’s high of 23,378.94 after hitting a low of 23,151.65. Turnover totaled NT$330.74 billion (US$11.06 billion).
According to Focus Taiwan, the U.S. markets continued to influence the local market as the Taiex came under heavier pressure initially in reaction to the U.S. losses. Analyst Adam Lin from Moore Securities Investment Consulting noted the impact of a 1.23 percent fall in the Dow Jones Industrial Average and a 2.24 percent decline in the Nasdaq index on Friday. This decline followed weaker-than-expected July nonfarm payrolls data and significant downward revisions of May and June jobs data.
“The selling on the Taiex was not intolerable at all as many investors were willing to pick up bargains, thinking the worst from the tariff issues was over and that the Taiex would not plunge as it did in April,” Lin commented. In April, the announcement of sweeping tariffs by the Donald Trump administration, including a 32 percent tariff against goods made in Taiwan, had caused the Taiex to plunge nearly 20 percent in a week to a closing low of 17,391.76.
Despite a 2.65 percent fall in American depositary receipts on Friday, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, fell only 0.44 percent to close at NT$1,135.00, recovering from a low of NT$1,125.00. TSMC’s recovery from the day’s low helped the broader market recoup about 80 points.
Among other semiconductor stocks, MediaTek Inc. lost 1.48 percent to end at NT$1,330.00, and ASE Technology Holding Co. shed 3.28 percent to close at NT$147.50. However, United Microelectronics Corp., a smaller contract chipmaker, ended up 0.37 percent at NT$41.20. Additionally, iPhone assembler and AI server maker Hon Hai Precision Industry Co. lost 0.83 percent to close at NT$180.00, while Quanta Computer Inc. ended down 1.40 percent at NT$281.00.
Petrochemical stocks underperformed as they were affected by falling crude prices after OPEC+ agreed to further increase production in September. The petrochemical index fell 5.48 percent, with Formosa Plastics Corp. shedding 7.00 percent to close at NT$37.85 and Formosa Petrochemical Corp. sliding 6.97 percent to end at NT$39.40. Formosa Chemicals and Fibre Corp. lost 5.57 percent to close at NT$26.30, and Nan Ya Plastics Corp. ended down 5.40 percent at NT$37.65.
Conversely, the financial index rose 1.60 percent, with speculation of government-led funds backing the buying to bolster investor confidence. In this sector, Cathay Financial Holding Co. rose 2.12 percent to close at NT$62.50, and Fubon Financial Holding Co. gained 1.69 percent to end at NT$84.00.
Looking ahead, Lin expects the Taiex’s consolidation to continue as many investors wait for a possible tariff on semiconductors. Despite the fall in the index, foreign institutional investors bought a net NT$11.20 billion in shares on the market Monday.