Taipei: Shares in Taiwan closed higher on Wednesday, with Taiwan Semiconductor Manufacturing Co. (TSMC) spearheading a market rebound amidst a narrow range of trading. This uptick comes amid ongoing concerns over tariff policies initiated by the Trump administration, according to dealers.
According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), concluded the day up by 164.74 points, or 0.74 percent, at 22,527.01. The index fluctuated between 22,211.10 and 22,527.01 throughout the session, with total turnover reaching NT$310.46 billion (US$10.668 billion). The market opened on a lower note, driven by tariff-related anxieties but managed to recover as the session progressed.
Dealers indicated that the pressure on the market stemmed from apprehensions that Taiwan has not yet brokered a deal with the United States to mitigate the 32 percent "reciprocal tariff" announced by U.S. President Donald Trump on April 2. This concern is heightened as the 90-day tariff pause, declared on April 9, approaches its end.
Despite these concerns, the electronics sector managed to regain momentum, pushing the Taiex above significant technical barriers, particularly the 10-day moving average around 22,500 points, by the end of the trading day. Tsai Ming-han, an analyst at Cathay Futures Consultant, noted that although the tariff issue continues to vex investors, the market displayed resilience compared to the panic sell-off experienced in April when tariffs were first introduced.
TSMC, the most heavily weighted stock in the local market, saw a rise of 0.93 percent, closing at NT$1,090.00. This recovery aided the broader market in recapturing approximately 200 points. Other semiconductor stocks also bounced back, with TSMC's supplier Scientech Corp. climbing 3.99 percent to NT$351.50, and ASE Technology Holding Co. increasing 2.45 percent to NT$146.50. Meanwhile, MediaTek Inc., a smartphone IC designer, surged 6.69 percent to end at NT$1,355.00.
In contrast, most old economy stocks exhibited weakness, except for copper-related stocks which saw a boost following Trump's declaration of a 50 percent tariff on copper imports. First Copper Technology Co.'s shares rose 7.92 percent to NT$34.75, while Hua Eng Wire and Cable Co. gained 3.18 percent to NT$25.95.
Conversely, Formosa Plastics Corp. witnessed a decline of 1.16 percent to NT$34.20, and Nan Ya Plastics Corp. decreased by 2.14 percent to NT$27.45. Textile companies such as Eclat Textile Co. and Far Eastern New Century Corp. also faced losses, dropping 1.76 percent and 0.92 percent, respectively.
In the financial sector, which fell by 0.71 percent, Fubon Financial Holding Co. saw a decrease of 1.11 percent to NT$80.30, and Cathay Financial Holding Co. dropped 0.81 percent to NT$61.10. Tsai further remarked that the Taiex remains capped at around 22,800 points unless turnover increases to NT$400 billion or more, allowing major stocks to gain momentum.
According to the TWSE, foreign institutional investors purchased a net NT$7.52 billion worth of shares on the main board on Wednesday.