Taiwan shares end down but come off low amid U.S. volatility

Taipei, March 4 (CNA) Shares in Taiwan closed lower Tuesday but recouped part of earlier losses as sentiment remained cautious in the wake of volatility in the U.S. markets overnight after U.S. President Donald Trump confirmed tariffs on imports from Canada and Mexico would go into effect later in the day as planned.

The Taiex, the Taiwan Stock Exchange’s (TWSE) weighted index, ended down 159.37 points, or 0.70 percent, at 22,596.88 after moving between 22,539.50 and 22,700.94. Turnover totaled NT$400.21 billion (US$12.15 billion).

The market opened down 1.09 percent in the wake of a 1.48 percent fall on the Dow Jones Industrial Average and a 2.64 decline on the tech-heavy Nasdaq index on Trump's tariff actions, dealers said.

The selling continued to push down the Taiex by almost 400 points at one point before some bargain hunters emerged to pick up select electronics heavyweights to help the broader market recover some of its earlier losses by the end of the session, dealers added.

The electronics index ended down 0.80 percent to close at 1,225.16, off a low of 1,210.70.

Certain tech heavyweights bucked the downturn, such as smartphone IC designer MediaTek Inc., which rose 2.38 percent to end at NT$1,505.00, and artificial intelligence server maker Quanta Computer Inc., which gained 3.19 percent to close at NT$258.50.

In addition, iPhone assembler Hon Hai Precision Industry Co., No. 2 in market value, also added 0.29 percent to end at NT$170.50.

"After the recent downturn, bargain hunters appeared active for the moment, setting their sights on large-cap tech stocks which had been hit hard by tariff concerns," Cathay Futures Consulting analyst Tsai Ming-han said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the local market’s most heavily weighted stock lost 1.96 percent to close at NT$1,000.00.

Earlier in the day, Trump said TSMC would not have to pay tariffs after the contract chipmaker pledged to invest an additional US$100 billion in the U.S.

"Investors were still digesting the news about TSMC's new plan," Tsai said. "Many of them just thought an unpredictable Trump could come up with more challenges to the chipmaker despite the investment pledge."

But TSMC's plan boosted its suppliers, with clean room equipment maker United Integrated Services Co. soaring 7.90 percent to close at NT$33.50 and IC assembly supplier Scientech Corp. rising 4.34 percent to end at NT$336.50.

Tsai said Trump's tariff threats continued to weigh on nontech stocks throughout the session.

In the old economy sector, food brand Uni-President Enterprises Corp. lost 2.51 percent to close at NT$81.50, China Steel Corp. shed 1.67 percent to end at NT$23.60, and cement maker TCC Group Holdings Co. dropped 1.14 percent to close at NT$34.60. In addition,

The financial sector fell 0.98 percent with Fubon Financial Holding Co. down 1.72 percent to end at NT$91.20 and Cathay Financial Holding Co. down 1.60 percent to close at NT$67.70.

"The Taiex stayed fragile technically. Investors should keep alert over any rebound," Tsai said.

According to the TWSE, foreign institutional investors sold a net NT$57.04 billion worth of shares on the main board Tuesday.