Taipei, Jan. 10 (CNA) Shares in Taiwan closed lower amid continuing concerns over volatility on the U.S. markets and inflationary pressure after the return of Donald Trump, who has vowed to raise tariffs, to the White House in January, dealers said.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 69.27 points, or 0.30 percent, at 23,011.86 after moving between 22,989.67 and 23,202.25. Turnover totaled NT$332.17 billion (US$10.08 billion).
The market opened down 13.67 points in follow-up selling on Thursday when the Taiex fell 1.39 percent. The board then rose about 120 points in the earlier morning session before selling set in again, sending the index into negative territory.
"After yesterday's heavy losses, the Taiex entered consolidation as investors feared continued volatility in U.S. tech stocks and concerns over inflation," Concord Capital Management analyst Lu Chin-wei said, referring to a spike in U.S. Treasury yields that made tech stocks less attractive.
"It was no surprise Taiwan Semiconductor Manufacturing Co. (TSMC) reversed from its initial upturn, and it could fall below the nearest technical support of NT$1,100.00 if U.S. tech volatility continues," Lu said.
TSMC, the most heavily weighted stock in the local market, closed unchanged at NT$1,100.00, off a high of NT$1,110.00. TSMC's retreat from its high cost the Taiex about 80 points.
Lu said the recent weakness in the share price of American AI chip designer Nvidia Corp. sent Taiwan's AI-related stocks lower, with iPhone assembler Hon Hai Precision Industry Co., No. 2 in terms of value, down 0.82 percent at NT$181.50, and rival Quanta Computer Inc. down 1.56 percent at NT$283.50.
Bucking the downturn, smartphone IC designer MediaTek Inc. rose 1.74 percent to close at NT$1,465.00 and IC packaging and testing services provider ASE Technology Holding Co. gained 1.51 percent to end at NT$168.50.
"The financial sector came under heavy pressure, contributing to the downward movement of the Taiex," Lu said.
With the financial index down 1.32 percent, Cathay Financial Holding Co. lost 4.69 percent to close at NT$65.10 after unexpectedly reporting NT$1.9 billion in losses in December. Meanwhile, Fubon Financial Holding Co. ended down 1.32 percent at NT$89.90.
Old economy industries largely moved in line with the broader market with Taiwan Cement Corp. falling 1.79 percent to close at NT$30.25 and Asia Cement Corp. shedding 0.63 percent to end at NT$39.20.
However, the biotech industry rose 0.95 percent amid increasing flu and measles infections. Injectable medicine developer Nang Kuang Pharmaceutical Co. gained 2.31 percent, closing at NT$42.15, while test kit brand Panion & BF Biotech Inc. ended up 0.85 percent at NT$83.00.
"Foreign institutional investors increased their short position futures contracts yesterday, so we need to monitor how the U.S. markets perform, as this could influence their strategies," Lu said.
According to the TWSE, foreign institutional investors sold a net NT$17.19 billion worth of shares on the main board Friday.
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