Taiwan shares sharply higher after U.S. rally

Taipei, Jan. 22 (CNA) Shares in Taiwan moved sharply higher Wednesday following an overnight rally in the United States, where the Dow Jones Industrial Average rose 1.24 percent, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, closed up 225.40 points, or 0.97 percent, at 23,525.41. Turnover totaled US$346.297 billion (US$10.56 billion).

The market opened more than 170 points higher led by tech heavyweights and momentum continued into the end of the session.

Mega International Investment Services analyst Alex Huang attributed the rise to newly sworn-in U.S. President Donald Trump's tariff announcements, which align with his previous campaign promises.

"So far, Trump has not introduced any tariff measures harsher than those pledged during his campaign," Huang said.

Earlier this week, as Trump had pledged previously, he announced that the U.S. would impose a 25 percent tariff on Canadian and Mexican goods from Feb. 1, and a 10 percent tariff on Chinese goods on the same date.

Taiwan Semiconductor Manufacturing Co. (TSMC), the local market's most heavily weighted stock, rose 1.34 percent to close at NT$1,135.00 after its American depositary receipts gained 3.40 percent overnight. The stock contributed about 120 points to the Taiex's rise.

"TSMC once again drove the market to move higher amid optimism toward artificial intelligence development," Huang said, adding that he expected the stock to soon challenge the intraday high of NT$1,160.00 seen on Jan. 7.

Among other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. rose 2.91 percent to end at NT$177.00, while smartphone IC designer MediaTek Inc. closed unchanged at NT$1,465.00.

iPhone assembler and artificial intelligence server marker Hon Hai Precision Industry Co., second to TSMC in terms of market value, rose 0.84 percent to end at NT$180.00.

While optimism about Trump's tariff actions spread to nontech stocks, gains in the sector were "largely capped," Huang said.

Formosa Plastics Corp. rose 0.69 percent to close at NT$36.25, and Nan Ya Plastics Corp. added 0.94 percent to end at NT$32.35. In addition, textile brand Far Eastern New Century Corp. gained 1.62 percent to close at NT$31.35, while Eclat Textile Co. ended down 0.75 percent at NT$530.00.

In the financial sector, which added 0.48 percent, Fubon Financial Holding Co. rose 1.42 percent to close at NT$92.80, and Cathay Financial Holding Co. gained 1.37 percent to end at NT$66.80.

Wednesday's session was the last before Taiwan's Lunar New Year Holiday break. Trading will resume on Feb. 3.

"During the holiday, investors should pay attention to what policies Trump will release, policymaking meetings of Japan and U.S. central banks and results of U.S. tech giants, which could move the global markets," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$14.88 billion worth of shares on the main board Wednesday.