Taiwan shares end sharply higher as TSMC bounces back

Taipei, March 5 (CNA) Shares in Taiwan moved sharply higher Wednesday, closing up 1.22 percent following a significant rebound for Taiwan Semiconductor Manufacturing Co. (TSMC), dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 275.02 points at 22,871.90 after moving between 22,757.22 and 22,948.30. Turnover totaled NT$360.42 billion (US$10.96 billion).

With its American depositary receipts up 4.06 percent overnight, TSMC, the local market's most heavily weighted, rose 2.00 percent to close at NT$1,020.00, contributing about 160 points to the Taiex's rise and sending the electronics index up 1.43 percent.

Earlier this week, TSMC said it would invest an additional US$100 billion in Arizona over the next four years.

"TSMC's strong showing indicated investors were largely positive toward its new investment [in the United States], embracing hopes that the investment will help the company avoid tariffs from the Trump administration," Hua Nan Securities analyst Kevin Su said.

► Trump, TSMC announce US$100 billion in new investment in U.S.

► TSMC's U.S. expansion may ease tariff risks: Analysts

► TSMC's U.S. deal 'doesn't seem to make sense economically': Researcher

Among other semiconductor stocks, Global Unichip Corp., TSMC's application-specific integrated circuit (ASIC) design subsidiary, gained 2.33 percent to end at NT$1,315.00, IC packaging and testing services provider ASE Technology Co. added 1.22 percent to close at NT$166.00 and smartphone IC designer MediaTek Inc. ended unchanged at NT$1,505.00.

iPhone assembler and artificial intelligence server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, rose 1.76 percent to close at NT$173.50, while Quanta Computer Inc., another AI server supplier, gained 1.35 percent to end at NT$262.00.

Old economy stocks

Su said buying was also seen among select old economy stocks boosted by a spike in commodity prices. "More importantly, these stocks are cheap to attract bargain hunters."

With the petrochemical index up 1.97 percent, Nan Ya Plastics Corp. soared 7.98 percent to close at NT$34.50, Formosa Chemicals & Fibre Corp. surged 6.58 percent to end at NT$29.95, Formosa Plastics Corp. rose 4.69 percent to close at NT$39.10, and Formosa Petrochemical Corp. ended up 4.56 percent at NT$40.10.

Elsewhere in the old economy sector, textile brand Far Eastern New Century Corp. gained 1.55 percent to close at NT$32.70, and Eclat Textile Co. rose 1.53 percent to end at NT$530.00.

In the financial sector, which stayed largely changed, Cathay Financial Holding Co. rose 0.74 percent to close at NT$68.20, while E. Sun Financial Holding Co. fell 0.85 percent to end at NT$29.00.

"Despite today's rebound, the Taiex remained in consolidation as the uncertainty created by the current tariff war has not been removed at all," Su said.

According to the TWSE, foreign institutional investors sold NT$14.07 billion worth of shares on the main board Wednesday despite the Taiex's rise.