Taiwan shares continue to rally, up over 300 points

Taipei, Aug. 12 (CNA) Shares in Taiwan continued their upward momentum from the previous session, rising more than 300 points in the morning session on Monday as the buying of large-cap electronics stocks continued, following gains enjoyed by tech stocks in the U.S. markets on Friday, dealers said.

As of 9:56 a.m., the Taiex, the benchmark weighted index on the Taiwan Stock Exchange (TWSE), had risen 376.16 points, or 1.75 percent, to 21,845.16 on turnover of NT$163.40 billion (US$5.04 billion).

On Friday, the Taiex closed up 2.87 percent, recovering some losses seen earlier last week. Amid that volatility, the Taiex lost 169.09 points, or 0.78 percent after it took its biggest plunge in history, falling 1,807.21 points on Aug. 5 amid fears over a possible recession in the United States.

The market opened up 0.61 percent on Monday with electronics heavyweights in focus as investors took cues from the gains on the U.S. markets, particularly the 0.51 percent increase in the tech-heavy Nasdaq index on Friday amid eased concerns over a possible U.S. economy hard landing.

Buying continued on the main board, helping the Taiex surpass technical hurdles ahead of 21,600 points and move even higher.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, continued to move higher, rising 1.39 percent to NT$947.00 as of 9:56 a.m. after a 1.56 percent hike in its American depositary receipts on the U.S. markets at the end of last week.

TSMC's gains contributed about 105 points to the Taiex rise Monday morning, and sent the electronics index and semiconductor sub-index higher by 1.99 percent and 1.68 percent, respectively.

Other big semiconductor stocks also helped drive the Taiex gains, with smartphone IC designer MediaTek Inc. rising 3.56 percent to NT$1,165.00 and IC packaging and testing services provider ASE Technology Holding Co. increasing 3.09 percent to NT$150.00 as of 9:56 a.m.

In addition, United Microelectronics Corp., a smaller contract chipmaker, had risen 1.11 percent to reach NT$54.50 and application-specific integrated circuit (ASIC) designer Alchip Technologies Ltd. had gained 2.23 percent to hit NT$2,290.00.

Also in the tech sector, iPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market value, had added 4.75 percent to hit NT$176.40 and artificial intelligence server maker Quanta Computer Inc, had risen 7.80 percent to reach NT$269.50.

Dealers said investors appeared more willing to pick up bargains as global equity markets, particularly the U.S. markets, showed signs of stabilizing, which lent support to the local market.

The extent of the current rebound on the local main board will depend on TSMC's performance, dealers added.