Taipei: Shares in Taiwan closed moderately higher Wednesday as large-cap tech stocks stayed resilient, helping the broader market recoup earlier losses and shrug off overnight declines on Wall Street following a spike in U.S. Treasury yields, dealers said.
According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 83.52 points, or 0.35 percent, at 24,100.30 after moving between 23,925.49 and 24,103.23. Turnover totaled NT$365.70 billion (US$11.90 billion), down from NT$420.25 billion Tuesday. Kerry Huang, an analyst with Concord Securities, said, “The rebound in the Taiex reflected a bet that U.S. markets will open higher to reverse Tuesday’s losses given current gains in futures.” Huang added, “But the local index still stayed in consolidation, with turnover reduced as investors await more economic data for clues about how the U.S. Federal Reserve will implement a rate cut cycle,” referring to the August jobs report due Friday.
The electronics sector rose 0.18 percent, supported by Taiwan Semiconductor Manufacturing Co. (TSMC), which closed flat at NT$1,160.00 after recovering from a low of NT$1,145.00. Smartphone IC designer MediaTek Inc. rose 2.67 percent to NT$1,345.00. Memory chip supplier Nanya Technology Corp. gained 1.53 percent to NT$46.35. Contract chipmaker United Microelectronics Corp. ended unchanged at NT$40.90.
iPhone assembler Hon Hai Precision Industry Co. gained 1.01 percent to NT$200.50. PC brand Acer Inc. rose 2.79 percent to NT$29.50.
Huang said investors bought defense-related stocks after Beijing unveiled weapons in a military parade Wednesday, expecting Taiwan to boost defense spending. Fighter jet developer Aerospace Industrial Development Corp. and aircraft maintenance provider Air Asia Co. both hit the 10 percent daily limit to close at NT$67.10 and NT$72.70, respectively. Lungteh Shipbuilding Co. and drone maker Thunder Tiger Corp. also rose 10 percent to NT$158.50 and NT$174.00, respectively.
EVA Airways added 0.25 percent to NT$39.55, while China Airlines fell 0.46 percent to NT$21.45.
The financial sector edged down 0.06 percent. Fubon Financial Holding Co. lost 0.92 percent to NT$86.00. Cathay Financial Holding Co. was unchanged at NT$63.50. Huang said, “Caution is expected to dictate market sentiment before Friday’s jobs data. The Taiex could move slightly up or down around the 20-day moving average of 24,160 points.”
the TWSE reported foreign institutional investors bought a net NT$8.22 billion worth of shares on the main board Wednesday.