Taiwan shares end higher before Nvidia results

Taipei, Feb. 26 (CNA) Shares in Taiwan broke a two-session falling streak Wednesday, as artificial intelligence stocks were boosted by expectations about an Nvidia Corp. investor conference later in the day, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 116.83 points, or 0.50 percent, at 23,402.55 after moving between 23,156.02 and 23,431.24. Turnover totaled NT$368.36 billion (US$11.23 billion).

After the index fell to the day's low of around 130 points, some bargain hunters jumped into the trading floor to pick up AI stocks, helping the broader market return to positive territory, and buying continued into the end of the session, dealers said.

"Judging from the gains enjoyed by these AI stocks, I suspect some investors remained upbeat about the current AI boom and were willing to buy into bargains before Nvidia's investor conference," Moore Securities Investment Consulting analyst Adam Lin said.

Despite reports that Microsoft has canceled some leases for data center capacity, "as other tech giants have not done so, investors still hope that Nvidia's guidance will clear such noises."

iPhone assembler and AI server maker Hon Hai Precision Industry Co., the second-largest listing by value, rose 1.69 percent to close at NT$180.50.

Elsewhere among AI stocks, Quanta Computer Inc., another AI sever, rose 2.16 percent to end at 260.00, and rival Wistron Corp. gained 2.68 percent to close at NT$115.00.

Wistron's cloud-enabled services subsidiary Wiwynn Corp. also ended up 4.15 percent at NT$2,025.00.

Also in the tech sector, Taiwan Semiconductor Manufacturing Co. (TSMC), the local market's most heavily weighted stock, came off a low to close 0.47 percent higher at the day's high of NT$1,060.00.

Smartphone IC designer MediaTek Inc. rose 0.65 percent to end at NT$1,560.00.

"With buying focused on large-cap tech stocks, old economy industries largely moved in weakness, falling back from Tuesday's upturn," Lin said. "Rotational buying stayed active on the main board."

After international crude oil prices fell to a two-month low overnight, Formosa Petrochemical Corp. shed 2.84 percent to close at NT$39.30, Formosa Plastics Corp. lost 1.73 percent to end at NT$39.65, Formosa Chemicals & Fibre Corp. dropped 1.64 percent to close at NT$30.05, and Nan Ya Plastics Corp. ended down 1.16 percent at NT$34.10.

Meanwhile, Shihlin Electric & Engineering Corp. lost 1.79 percent to close at NT$91.50, and Fortune Electric Co. shed 2.19 percent to end at NT$625.00.

The financial sector rose 0.87 percent to give additional boost to the broader market with Fubon Financial Holding Co. up 1.20 percent to close at NT$92.80, and Cathay Financial Holding Co. up 0.73 percent to end at NT$69.20.

"Investors had better watch closely Nvidia's comments and how U.S. tech stocks will react in the after-hours market after the investor conference, which will move the Taiex Thursday," Lin said.

Despite a higher Taiex, foreign institutional investors sold a net NT$3.79 billion worth of shares on the main board Wednesday.