Taiwan shares soar, led by TSMC, as U.S. tech results boost buying

Taipei, May 2 (CNA) Shares in Taiwan rose over 500 points on Friday, led by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), after strong earnings from two major U.S. tech giants eased concerns about AI demand despite tariff disruptions under President Donald Trump, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 552.61 points, or 2.73 percent, at the day's high of 20,787.64 after coming off a low of 20,534.08. Turnover totaled NT$326.66 billion (US$10.41 billion).

"It is another session on the local main board dominated by U.S. markets, with the bellwether electronics sector in focus," Cathay Futures Consultant analyst Tsai Ming-han said.

Tsai was referring to a 1.52 percent increase on the tech heavy Nasdaq index after Meta Platforms and Microsoft posted better than expected quarterly earnings.

"Bargain hunters turned active to take advantage of recent heavy losses caused by Trump's unpredictable tariff polices," Tsai said. "Riding the waves of solid AI demand, TSMC attracted strong buying, giving a significant boost to the Taiex."

After its American depositary receipts (ADRs) rose 3.62 percent overnight, TSMC, the most heavily weighted local stock, rose 4.63 percent to close at the day's high of NT$950.00, contributing about 340 points to the Taiex's rise and sending the electronics index and semiconductor sub-index higher by 3.39 percent and 3.60 percent, respectively.

Among other semiconductor stocks, TSMC's application specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. gained 5.85 percent to end at NT$1,085.00, and IC packaging and testing services provider ASE Technology Holding Co. added 2.58 percent to close at NT$139.00.

Bucking the uptrend, smartphone IC designer MediaTek Inc. lost 3.70 percent to end at NT$1,300.00 amid caution over global smartphone demand in the second quarter, dealers said.

Optimism over AI development also lifted Taiwan's AI related stocks, with iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, up 4.24 percent to close at NT$147.50, and Quanta Computer Inc., another AI server supplier, rising 5.24 percent to end at NT$251.00.

In addition, Wistron Corp. which also rolls out AI servers, rose 3.94 percent to close at NT$105.50, and AI graphics card vendor Giga-Byte Technology Co. gained 3.28 percent to end at NT$236.00.

Buying also spread to large cap old economy stocks with Formosa Plastics Corp. up 2.35 percent to close at NT$34.80, and Taita Chemical Co. up 1.25 percent to end at NT$12.15.

As the government aims to boost new energy supplies, which could raise demand for equipment, Shihlin Electric & Engineering Corp. jumped 10 percent, the maximum daily increase, to close at NT$156.00, and rival Allis Electric Co. also surged 10 percent to end at NT$101.00.

Underperforming the broader market, the financial sector rose only 0.36 percent with Fubon Financial Holding Co, up 0.83 percent to close at NT$85.00, and Cathay Financial Holding Co. rising 0.34 percent to end at NT$58.70.

Meanwhile, Mega Financial Holding Co. closed down 0.40 percent at NT$37.60.

"Investors need to pay close attention to the April U.S. nonfarm payroll data due out later in the day to get a better idea whether Trump's tariffs have hurt the economy, which could move the markets," Tsai said.

According to the TWSE, foreign institutional investors bought a net NT$38.77 billion worth of shares on the main board Friday.