Taiwan shares end up led by electronics sector

Taipei, Feb. 7 (CNA) Shares in Taiwan rose Friday after recovering initial losses, as the bellwether electronics sector, led by artificial intelligence-related stocks, regained its footing, helping the broader market close at the day's high, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 161.67 points, or 0.69 percent, at 23,478.27 after coming off a low of 23,254.17. Turnover totaled NT$351.72 billion (US$10.72 billion).

The market opened down 0.11 percent and quickly hit the day's low, falling 62.43 points as investors cashed in on gains from the previous session when the Taiex had dropped 0.67 percent.

However, buying interest picked up, with AI-related stocks in focus, driving the local main board higher by the session's close after a 3.08 percent gain in U.S. AI chip designer Nvidia Corp. shares on Thursday.

"At least for now, investors appeared to focus on economic fundamentals rather than U.S. President Donald Trump's tariff actions," said Adam Lin, an analyst at Moore Securities Investment Consulting.

"Several U.S. tech giants, including Amazon, plan to increase their AI investments to help stabilize the tech sector in the U.S.," Lin said, referring to the 1.94 percent gain in the electronics sector.

Riding on Nvidia's overnight gains, iPhone assembler Hon Hai Precision Industry Co., which also manufactures AI servers, rose 2.89 percent to close at NT$178.00, while Quanta Computer Inc., another AI server maker, gained 3.92 percent to end at NT$252.00.

In addition, AI graphics card vendor Giga-Byte Technology Co. rose 2.01 percent to close at NT$254.00, and cloud-enabled services provider Wiwynn Corp. added 3.30 percent to end at NT$2,190.00.

Buying also spread to the semiconductor industry, which rose 0.95 percent. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, rose 0.90 percent to end at NT$1,125.00. Global Unichip Corp., TSMC's application-specific integrated circuit (ASIC) design subsidiary, grew 4.15 percent to end at NT$1,380.00.

Meanwhile, Alchip Technologies Inc., another ASIC designer, soared 7.61 percent to close at NT$3,605.00, and IC packaging and testing services provider ASE Technology Holding Co. gained 2.17 percent to end at NT$164.50.

While the tech sector led the gains, traditional industries saw weakness Friday, with Formosa Plastics Corp. falling 2.90 percent to NT$33.50 and Formosa Chemicals & Fibre Corp. dropping 2.97 percent to NT$26.10. In addition, China Steel Corp., the largest steel maker in Taiwan, fell 1.26 percent to close at NT$19.65, and Chung Hung Steel Corp. shed 2.14 percent to end at NT$18.25.

Bucking the downturn, the biotech industry rose 1.21 percent due to a rise in flu cases. Test kit brand Panion & BF Biotech Inc. was up 0.56 percent to close at NT$89.10, and drug developer Chunghwa Chemical Synthesis & Biotech Co. increased by 1.33 percent to end at NT$34.25.

In the financial sector, which lost 0.46 percent, Fubon Financial Holding Co. lost 0.75 percent to close at NT$92.30, while Cathay Financial Holding Co. ended unchanged at NT$66.90.

"Investors should closely monitor the U.S. January non-farm payroll data, due later today, for insights into the Federal Reserve's next move, which could influence U.S. markets," Lin said.

According to the TWSE, foreign institutional investors bought a net NT$14.17 billion worth of shares on the main board Friday.