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Taiwan shares rebound, close above 12-month moving average

2018/07/12 17:13:22

Taipei, July 12 (CNA) Shares in Taiwan staged a technical rebound Thursday from a slump seen the previous session, moving above the 12-month moving average of 10,726 points.

The Taiwan Stock Exchange's main index, the Taiex, closed up 61.54 points, or 0.58 percent, at 10,738.38, after moving between 10,643.65 and 10,752.57. Turnover totaled NT$131.52 billion (US$4.31 billion).

The market opened down 31.93 at 10,644.91 points as the escalating U.S.-China trade war weighed on global markets, with Wall Street ending its upward trend for the past four sessions.

The U.S. Trade Representative said Wednesday that Washington is preparing to impose 10 percent tariffs on another US$200 billion of Chinese imports, escalating trade friction between the world's two largest economies.

Bucking the global trend, the market staged a rebound as some investors shifted to the buy side to pick up bargains after the Taiex slid below 10,700 points over the past few sessions.

Stocks in the Apple Inc. supply chain were mixed, with contract chip maker Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the local market, rising 0.23 percent to end at NT$220.50, while Hon Hai Precision Industry Co., an assembler of iPhones and iPads, fell 0.49 percent to end at NT$81.20.

Shares in smartphone camera lens supplier Largan Precision Co. rose 2.71 percent to close at NT$4,930.00.

Electronic component manufacturer Yageo Corp., rose 4.15 percent to end at NT$1,005.00, while another passive component provider Walsin Technology Corp. surged 7 percent to end at NT$438.00.

Boryi Chien (簡伯儀), a manager at Cathay Securities Co., said the market is expected to continue in technical correction mode and the further development of U.S.-China trade tensions will continue to be a key factor impacting the performance of the local bourse.

According to the TWSE, foreign institutional investors bought a net NT$805 million worth of shares on the main board Thursday.

(By Jiang Ming-yan and Evelyn Kao)