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Taiwan shares up after Wall Street rally

2018/10/17 12:04:32

Taipei, Oct. 17 (CNA) Taiwan shares extended their momentum Wednesday from a day earlier, rising more than 100 points in the morning to push back above the 10,000-point mark following a rally on Wall Street overnight, dealers said.

The bellwether electronics sector spearheaded the gains, led by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), after the strong gains posted by tech stocks in U.S. markets, they said.

As of 11:27 a.m., the Taiex -- the weighted index on the Taiwan Stock Exchange (TWSE) -- had gained 82.28 points, or 0.82 percent, off an early high of 10,127.01, to 10,063.38 on turnover of NT$66.56 billion (US$2.15 billion).

"The current buying largely reflects soaring U.S. markets overnight," MasterLink Securities analyst Tom Tang said. "The strong U.S. markets allowed investors to take a breather after a plunge in recent sessions."

On Tuesday, the Dow Jones Industrial Average rose more than 500 points, or 2.17 percent, and the tech heavy Nasdaq jumped 2.89 percent.

"The electronics sector served as a driver of the gains here soon after the market opened. TSMC led the broader market to breach 10,000 points again," Tang said.

As of 11:27 a.m., TSMC, the most heavily weighted stock on Taiwan's market, had gained 1.90 percent to NT$241.50, with 25.56 million shares changing hands. Its gains alone boosted the Taiex by about 45 points.

Led by TSMC, a supplier of processors to Apple Inc.'s iPhone production, the bellwether electronics sector had gained 1.32 percent.

Among other "Apple concept stocks," which were helped by a 2.20 percent increase in Apple shares overnight, metal casing maker Catcher Technology Co. had risen 2.95 percent to NT$314.00, and smartphone camera lens supplier Largan Precision Co. had gained 0.90 percent to NT$3,360.00.

Buying also spread to old economy stocks as investors tried to boost the spot market in a bid to profit on futures Wednesday, when October futures contracts were to be settled, Tang said.

In the old economy sector, textile maker Far Eastern New Century Corp. had added 2.25 percent to NT$31.75, and food brand Uni-President Enterprises Corp. had risen 0.68 percent to NT$73.80 as of 11:27 a.m.

"How the local equity market will go will depend on how Wall Street performs," Tang said. "With ongoing concerns over trade friction between the United States and China, I think this morning's gains were a technical rebound after a plunge in recent sessions."

"In addition, the current earnings season is expected to continue to dictate share prices here," Tang said, referring to TSMC's investor conference on Thursday, which should offer indications of the prospects of the global tech industry.

Tang said the Taiex is expected to move between 9,900 and 10,200 points in the short term.

(By Frances Huang)