Taiwan shares end lower amid tariff concerns

Taipei, Feb. 12 (CNA) Shares in Taiwan closed lower Wednesday with earlier gains eroded as market sentiment remained haunted by possible U.S. tariffs on semiconductors, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) weighted index, ended down 94.30 points, or 0.40 percent, at 23,289.75 after moving between 23,289.75 and 23,528.61. Turnover totaled NT$369.95 billion (US$11.26 billion).

The market opened up 0.28 percent and momentum continued to push up the Taiex to the day's high by about 144 points at one point on follow-through buying from a session earlier, when the main board 0.57 percent.

However, selling set in soon with large cap electronics stock in focus to push down the index to negative territory by the end of the session as tariff concerns prompted investors to cut holdings in semiconductor stocks such as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), dealers said.

TSMC, the local market's most heavily weighted stock, lost 0.90 percent to close at the day's low of NT$1,100.00 after hitting a high of NT$1,115.00. Its losses contributed about 80 points to the Taiex's fall.

"Many investors appeared reluctant to hold onto semiconductor stocks as worries over a massive tariff planned by (U.S. President Donald) Trump," MasterLink Securities analyst Tom Tang said. "As for TSMC, the stock has been consolidated since trading resumed on Feb. 3 after the Lunar New Year holiday for the sake of tariff fears."

Among other semiconductor stocks, which also fell from the day's high, smartphone IC designer MediaTek Inc. lost 1.66 percent to end at NT$1.485.00, IC packaging and testing services provider ASE Technology Holding Co. dropped 1.19 percent to close at NT$165.50, and United Microelectronics Corp. (UMC), a smaller contract chipmaker, ended down 0.74 percent at NT$40.10.

iPhone assembler and artificial intelligence server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, shed 1.12 percent to close at the day's low of NT$177.00, off a high of NT$181.50, which added selling to the broader market.

However, other AI-related stocks appeared resilient with AI server supplier Quanta Computer Inc. unchanged at NT$258.00, and rival Wistron Corp. up 0.46 percent to close at NT$108.50. In addition, AI graphics card vendor Giga-Byte Technology Co. gained 0.19 percent to end at NT$257.50.

Rotational buying stayed active as investor parked their money in select old economy stocks, Tang said.

In the petrochemicals sector, which closed up 1.65 percent, Formosa Plastics Corp. rose 4.85 percent to close at NT$35.64, Formosa Petrochemical Corp. gained 3.75 percent to end at NT$36.00, Formosa Chemicals & Fibre Corp. grew 2.69 percent to close at NT$26.70, and Nan Ya Plastics Corp. ended up 2.65 percent at NT$31.00.

In the financial sector, which rose 0.22 percent, Cathay Financial Holding Co. rose 0.29 percent to close at NT$68.70, while Fubon Financial Holding Co. lost 0.43 percent to end at NT$93.40.

"Investors had better pay close attention to the U.S. January inflation data and Fed Chair Jerome Powell's second day of congressional testimony [both due on Wednesday], which could move the markets," Tang said.

Despite the loss in the Taiex, foreign institutional investors still bought a net NT$2.63 billion worth of shares on the main board Wednesday, according to the TWSE.