Taiwan shares end up ahead of Nvidia's conference

Taipei, March 17 (CNA) Shares in Taiwan closed higher Monday led by artificial intelligence related stocks, on hopes that American AI chip designer Nvidia Corp. will showcase positive leads at its annual GPU technology conference (GTC) slated to open later in the day, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 150.58 points, or 0.69 percent, at 22,118.63, after moving between 22,110.08 and 22,306.83. Turnover totaled NT$301.88 billion (US$9.15 billion).

"The local main board rode the wave of expectations about Nvidia's GTC as many investors have high hopes the AI giant will unveil the next generation AI server GB300, which is likely to benefit its Taiwanese suppliers," Hua Nan Securities analyst Kevin Su said.

"Moreover, a tariff war triggered by the Trump administration, which could push up inflation and cause a recession in the United States, is expected to prompt the Federal Reserve to start preventive rate cuts," Su said.

"Investors should keep a close eye on comments made by Fed Chair Jereme Powell after the two-day meeting," which was scheduled to end Wednesday (U.S. time), for more clues, he said.

The electronics index rose 0.77 percent serving as a driver to the Taiex's gains throughout the session after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, gained 1.15 percent to close at NT$970.00, contributing about 88 points to the Taiex's rise.

"However, TSMC still came off a high (of NT$985.00) amid worries the company will have to take a stake in Intel Corp.'s factories in the face of tariff threats," Su said.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. rose 1.79 percent to end at NT$1,425.00, and IC packaging and testing services provider ASE Technology Holding Co. grew 1.61 percent to close at NT$157.50.

In the AI-related segment, AI PC brand Asustek Computer Inc. rose 2.63 percent to end at NT$624.0, and LITE-ON Technology Corp., a maker of power management solutions for AI server use, gained 1.42 percent to close at NT$107.00.

However, iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, lost 1.18 percent to close at NT$168.00.

Select old economy stocks, in particular the petrochemical sector, benefited from bargain hunting after recent heavy losses, Su said.

After international crude oil prices rose about 0.6 percent overnight, the petrochemical industry rose 0.9 percent with Nan Ya Plastics Corp. up 2.68 percent to close at NT$34.45 and Formosa Chemicals & Fiber Corp. rising 1.56 percent to end at NT$29.30.

With the transportation index up 1.64 percent on hopes of a high cash dividend payout, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, rose 4.77 percent to close at NT$230.50.

In the financial sector, which rose 0.62 percent, Fubon Financial Holding Co. was up 2.04 percent to end at NT$90.00, while Cathay Financial Holding Co. closed unchanged at NT$66.00.

"As many foreign institutions are still stood on the sell side amid tariff uncertainties, local investors have stayed cautious even if the Taiex moves higher," Su said.

Despite the gains on the Taiex, foreign institutional investors sold a net NT$10.31 billion worth of shares on the main board Monday, according to the TWSE.