Taipei: Shares in Taiwan reached a new record high on Tuesday as Taiwan Semiconductor Manufacturing Co. (TSMC) rebounded from early losses, buoyed by optimism regarding its fundamentals, dealers reported. The Taiex, Taiwan Stock Exchange's benchmark index, rose by 120.70 points, or 0.38 percent, closing at a high of 31,759.99, with a turnover totaling NT$777.11 billion (US$24.55 billion).

According to Focus Taiwan, TSMC's stock, which represents over 40 percent of the total market value, increased by 0.85 percent to finish at NT$1,775.00, recovering from a low of NT$1,740.00. This recovery contributed to the broader market's ability to reclaim approximately 280 points. While shares in IC packaging and testing service provider ASE Technology Holding Co. fell by 1.00 percent to NT$296.00, and memory chip supplier Nanya Technology Corp. decreased by 1.09 percent to NT$272.00, United Microelectronics Corp., another contract chipmaker, surged by 8.48 percent to NT$67.80.

In the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co. declined by 2.61 percent, closing at NT$223.50, while power management solutions provider Delta Electronics Inc. increased by 0.89 percent, ending at NT$1,130.00. Analyst Adam Lin from Moore Securities Investment Consulting noted that old economy stocks retreated from recent gains; however, machinery companies saw increased buying as Washington agreed to reduce tariffs on Taiwanese goods from 20 percent to 15 percent, benefiting machinery makers and glass cloth producers.

Hiwin Technologies Corp., a machinery maker, rose by 1.52 percent to NT$233.50, and Tongtai Machine and Tool Co. gained 1.37 percent, closing at NT$37.00. In the glass cloth sector, Taiwan Glass Industry Co. surged by the daily maximum of 10 percent to NT$50.50, and Baotek Industrial Materials Ltd. also increased by 10 percent, ending at NT$101.50 on the over-the-counter market.

Conversely, Nan Ya Plastics Corp. dropped by 3.78 percent to close at NT$76.40, and Formosa Plastics Corp. decreased by 2.97 percent, ending at NT$42.40. In the financial sector, Fubon Financial Holding Co. fell by 1.05 percent to NT$94.00, and Cathay Financial Holding Co. declined by 1.03 percent to NT$76.60, while E. Sun Financial rose slightly by 0.30 percent to NT$33.10.

Lin advised investors to remain cautious about possible volatility, particularly with the upcoming January contract settlement date. The performance of U.S. markets could influence the Taiex, as foreign institutional investors sold a net NT$3.98 billion of shares on the main board Tuesday.