Taiwan shares end down amid concern over U.S. economy

Taipei, Feb. 24 (CNA) Shares in Taiwan fell by more than 160 points Monday as investor sentiment was spooked by weaker-than-expected trading in the United States, which prompted fears of a U.S. slowdown, according to a securities analyst.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), closed down 164.94 points or 0.70 percent, at 23,565.31 after fluctuating between 23,461.43 and 23,605.22. Turnover totaled NT$361.89 billion (US$11.06 billion).

"Today's losses reflected a decline on the U.S. markets after a 10 percent decline in the University of Michigan's Consumer Sentiment Index," Hua Nan Securities analyst Kevin Su said, referring to a 1.69 percent drop on the Dow Jones Industrial Average and a 2.20 percent fall on the tech-heavy Nasdaq index Friday.

"With the Trump administration aggressively slashing spending, many investors feared the impact on the economy," Su said. "Caution dominated trading today with turnover remaining low."

Monday's turnover fell below the average of NT$370 billion from the previous five sessions, according to Su.

After the losses among U.S. tech stocks, Su said, chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the Taiwan exchange, fell 1.83 percent to close at NT$1,075.00, contributing about 160 points to the Taiex's fall, and sending the electronics index down by 1.10 percent.

"Selling of TSMC came as many investors were still worried that the Trump administration's trade war will pressure the chipmaker to invest more in the U.S.," Su said.

Among other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. fell 2.76 percent to end at NT$176.00, and memory chip supplier Nanya Technology Co. shed 1.45 percent to close at NT$40.85.

However, smartphone IC designer MediaTek Inc. rose 2.32 percent to end at NT$1,545.00, and iPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market value, rose 0.55 percent to close at NT$184.00.

"The silver lining was that select old economy stocks still attracted rotational buying," Su said. "Today, shipping and steel stocks stood out, preventing the Taiex from falling further."

On the back of rising freight rates, the transportation index rose 2.33 percent, with Evergreen Marine Corp., the largest container cargo shipper in Taiwan, up 3.99 percent to close at NT$221.50, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. up 1.40 percent and 1.90 percent, respectively, to end at NT$72.40 and NT$85.60.

Amid hopes about rising demand after an end to the Russian-Ukraine war, Tung Ho Steel Corp. rose 1.38 percent to close at NT$73.50, and China Steel Corp., the largest steel maker in Taiwan, gained 0.87 percent to end at NT$23.20 with the steel index up 1.19 percent.

In the financial sector, which fell 0.51 percent, Fubon Financial Holding Co. shed 1.08 percent to close at NT$91.60, and Cathay Financial Holding Co. ended down by 0.29 percent at NT$68.70.

"In addition to certain old economy stocks, investors parked their funds in small-cap stocks on the over-the-counter (OTC) market, which served as a safe haven," Su said, referring to the OTC index outperforming the Taiex and rising 0.23 percent.

According to the Taiex, foreign institutional investors sold a net NT$19.53 billion worth of shares on the main board Monday.