Taiwan shares rebound almost 3% but turnover down amid tariff fears

Taipei, April 1 (CNA) Shares in Taiwan regained momentum Tuesday, rising by nearly 3 percent after tumbling 4.20 percent a session earlier, but investors remained cautious just days before the White House announces a new round of tariffs, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended up 584.27 points, or 2.82 percent, at 21,280.17 after moving between 20,884.53 and 21,315.52. Tuesday's gains were the second largest for this year, only trailing 639.41 points seen on Jan. 6.

Turnover totaled NT$271.58 billion (US$8.16 billion) Tuesday, down from NT$437.48 billion a session earlier and also lower than the average of about NT$300 billion in the previous five sessions.

"After yesterday's plunge (of 906.99 points), it was no surprise that the Taiex rebounded today," Concord Securities analyst Kerry Huang said.

"But turnover fell, indicating many investors preferred to stay on the sidelines, waiting for the Trump administration's announcement."

The bellwether electronics sector rose 3.36 percent Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock here, gained 3.74 percent to close at NT$944.00, contributing about 270 points to the Taiex's rise.

"If turnover stays low, it will be hard for TSMC to challenge the nearest technical barrier around NT$975.00. Without TSMC steaming ahead, the Taiex could start to consolidate," Huang said.

The buying in TSMC spread to other semiconductor stocks, with smartphone IC designer MediaTek Inc. up 5.04 percent to end at NT$1,460.00, and United Microelectronics Corp., a smaller contract chipmaker, up 2.91 percent to close at NT$45.95, while it denied a report of a merger plan with U.S.-based counterpart GlobalFoundries Inc.

But application-specific integrated circuit (ASIC) designer Alchip Technologies Inc. ended down 2.74 percent at NT$2,665.00.

Second to TSMC in terms of market value, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 4.11 percent to close at NT$152.00, and Quanta Computer Inc., another AI server supplier, gained 4.23 percent to end at NT$234.00.

Raw material stocks in the old economy sector also attracted bargain hunters, dealers said.

Formosa Chemicals & Fibre Corp. rose 4.41 percent to close at NT$27.20, and Formosa Plastics Corp. added 3.42 percent to end at NT$37.85.

In addition, China Steel Corp., the largest steel maker in Taiwan, gained 2.46 percent to close at NT$22.95, and Tung Ho Steel Corp. rose 5.34 percent to end at NT$75.00.

Elsewhere in the old economy sector, textile brand Far Eastern New Century Corp. grew 3.80 percent to close at NT$34.15, and Eclat Textile Co. ended up 4.20 percent at NT$458.50.

In the financial sector, Fubon Financial Holding Co. rose 2.46 percent to close at NT$87.40, while Mega Financial Holding Co. lost 0.50 percent to end at NT$39.70.

"Investors should keep a close eye for any clues about the state of the U.S. economy, which could move global markets," Huang said, referring to the March job data due Friday and a speech planned by Fed Chair Jereme Powell also for Friday.

Despite the Taiex's gains, foreign institutional investors still sold a net NT$4.32 billion in shares on the market Tuesday, according to the TWSE.