Taiwan shares end down as tariff fears linger

Taipei, March 24 (CNA) Shares in Taiwan closed down Monday after giving up early gains as concerns over reciprocal tariffs threatened by the Donald Trump administration continued to weigh on market sentiment, dealers said.

The Taiex, the Taiwan Stock Exchange's weighted index. ended down 102.46 points, or 0.46 percent, at the day's low of 22,106.64 after coming off a high of 22,380.73. Turnover totaled NT$244.65 billion (US$7.41 billion), down from NT$333.35 billion the previous session.

"Whenever the Taiex rebounded, investors took profit amid lingering concerns over the U.S. reciprocal tariffs," Cathay Futures Consultant analyst Tsai Ming-han said. "Investors just do not like uncertainty."

Trump has continued to insist that some tariffs will take effect on April 2, but late last week suddenly promised "flexibility" on tariffs, helping U.S. markets climb out of their initial weakness on Friday and boosting the Taiex early Monday.

"Look at the reduced turnover. I think many investors stood on the sidelines. Turnover could continue to shrink," Tsai said, indicating that the Taiex did face stiff technical resistance ahead of the 240-day moving average of 22,313 points.

Tsai said the bellwether electronics sector continued to dominate Monday's session, dragging the index lower by the end of the session.

"But TSMC (Taiwan Semiconductor Manufacturing Co.) stayed steady today or the Taiex would have fallen further," Tsai said.

Coming off a high of NT$987.00, TSMC, the most heavily weighted stock on the market, closed unchanged at NT$972.00, while the electronics index lost 0.58 percent to end at NT$1,193.21, off a high of 1,211.72.

Tsai warned, however, that TSMC could face more volatility in the near future.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. ended unchanged at NT$1,480.00, while IC packaging and testing services provider ASE Technology Holding Co. closed down 0.31 percent at NT$160.50.

Appearing resilient, TSMC's application specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. rose 2.14 percent to end at NT$1,195.00.

Meanwhile, iPhone assembler and artificial intelligence server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, lost 1.21 percent to close at NT$163.00, and Quanta Computer Inc., another AI server supplier, shed 2.54 percent to end at NT$249.50.

Tsai said selling due to tariff concerns was seen almost across the board, with Formosa Plastics Corp. losing 1.02 percent to close at NT$38.65 and Formosa Chemicals & Fibre Corp. dropping 1.40 percent to end at NT$28.25.

In addition, Eclat Textile Co. fell 1.90 percent to close at NT$490.50, while rival Makalot Industrial Co. ended up 0.59 percent at NT$342.00.

"Military concept" stocks attracted strong buying on growing tensions with China, with Lungteh Shipbuilding Co. soaring 10 percent, the maximum daily increase, to close at NT$112.50, and fighter jet maker Aerospace Industrial Development Corp. surging 5.61 percent to end at NT$54.60.

In the financial sector, which rose 0.33 percent, CTBC Financial Holding Co. rose 1.00 percent to close at NT$40.35, while Fubon Financial Holding Co, ended unchanged at NT$89.00.

"More weakness is ahead as tariff fears continue," Tsai said. "But, I expect the nearest technical support at around 21,769 points, the day's low of March 11."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$11.47 billion in shares on the market Monday.