Taiwan shares end up after early gains eroded amid tariff uncertainty

Taipei, March 12 (CNA) Shares in Taiwan closed higher on a technical rebound Wednesday from a slump a session earlier, led by large cap tech stocks, but saw part of earlier gains eroded amid uncertainties caused by U.S. President Donald Trump's tariff policies, dealers said.

After plunging 1.73 percent Tuesday, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 207.27 points, or 0.94 percent, at 22,278.36 Wednesday after moving between 22,153.61 and 22,391.47. Turnover totaled NT$339.19 billion (US$10.30 billion).

"Yesterday's plunge made the local main board technically unstable. It was not surprising that investors rushed to take profit when the Taiex rebounded today," Concord Securities analyst Kerry Huang said.

"Market sentiment remained cautious as few can say when uncertainties created by Trump's actions will be removed. The Taiex still moved in consolidation," Huang said.

Huang said the bellwether electronics sector, which has been battered recently, rose 1.32 percent to lead the rebound after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the market, gained 1.75 percent to close at NT$988.00, off a high of NT$995.00.

"After TSMC fell below the NT$1,000 mark (Monday), strong technical resistance lies ahead of that level. That's why the stock failed to challenge it today," Huang said.

"Moreover, speculation that TSMC has presented a plan to form a joint venture (with Nvidia, Advanced Micro Devices and Broadcom) to operate Intel's factories surfaced this morning, which concerned investors over possible technology leaks," Huang said, referring to a Reuters report citing four unnamed sources.

Among other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. gained 1.92 percent to end at NT$159.00, and smartphone IC designer MeidaTek Inc. added 1.81 percent to close at NT$1,410.00.

Also in the tech sector, shares in iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 1.19 percent to end at NT$170.50.

With the rebound featuring tech stocks, old economy industries largely moved in weakness caused by tariff concerns, Huang said.

China Steel Corp., the largest steel maker in Taiwan, lost 0.62 percent to close at NT$24.15, and Chung Hung Steel Corp. dropped 1.21 percent to end at NT$24.50.

In addition, Formosa Plastics Corp. shed 2.05 percent to close at NT$38.20, while Nan Ya Plastics Corp. ended up 0.89 percent to end at NT$34.00.

The financial sector appeared more stable on hopes of generous cash dividend payouts, up 0.34 percent, with Cathay Financial Holding Co. up 0.91 percent to close at NT$66.50 and E. Sun Financial Holding Co. rising 0.52 percent to end at NT$29.10.

However, Fubon Financial Holding Co. closed down 0.22 percent at NT$89.50.

"Despite the rebound, it is possible the Taiex will test the day's low of 21,769 seen yesterday as the tariff issue will continue to haunt market sentiment," Huang said. "Investors should stay alert over any rebound."

According to the TWSE, foreign institutional investors sold a net NT$17.21 billion worth of shares on the main board Wednesday.