Taiwan shares end up on U.S.-China talks progress

Taipei, May 12 (CNA) Shares in Taiwan closed higher Monday on improved market sentiment after the United States said trade talks with China yielded "substantial progress," dealers said.

In addition, buying focused on the bellwether electronics sector with investors anticipating positive leads from the upcoming 2025 Computex Taipei, which will run from May 20-23, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 214.50 points, or 1.03 percent, at 21,129.54 after moving between 20,966.95 and 21,176.13. Turnover totaled NT$279.06 billion (US$9.22 billion).

"Judging from today's movement, I think many investors have embraced hopes that the U.S. and China will announce a favorable conclusion to the two-day negotiations (held in Geneva) over the weekend," Hua Nan Securities analyst Kevin Su said. A joint statement on the talks will be released Monday (U.S. time).

"As China faces a staggering high tariff (of 145 percent) imposed by the U.S., their conclusion could serve as an important indication for other countries which also face high tariffs by Washington," Su said.

The tech sector attracted more significant buying Monday, up 1.17 percent, serving as a major diver to the Taiex, Su said.

"Computex is coming," Su said. "Investors hope (artificial intelligence) chip designer Nvidia Corp. CEO Jensen Huang will give positive leads in his speech at the event."

Among AI-related stocks, shares in iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 4.08 percent to close at NT$153.00, and Wistron Corp., another AI server supplier, gained 1.40 percent to end at NT$108.50.

In addition, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted local stock, which rolls out chips for Nvidia, rose 0.84 percent to close at NT$957.00. The stock's gains contributed about 60 points to the Taiex's rise Monday.

"TSMC shares jumped over the nearest technical hurdles ahead of NT$956, the 60-day moving average to make the stock technically healthier," Su said.

Also in the semiconductor industry, application-specific integrated circuit (ASIC) designer AIchip Technologies Inc. soared 10 percent, the maximum daily increase, to end at NT$2,530.00.

IC packaging and testing services provider ASE Technology Holding Co. closed up 3.27 percent at NT$142.00. However, smartphone IC designer MediaTek Inc. lost 0.75 percent to end at NT$1,315.00.

Enthusiasm over robotics developments in the AI era boosted machinery stocks including Hiwin Technologies Corp. and TBI Motion Technology Co., which rose 7.45 percent and 7.43 percent, respectively, to close at NT$223.50 and NT$42.65.

Buying was also seen among old economy stocks with Eclat Textile Co. up 6.84 percent to end at NT$453.00, and rival Makalot Industrial Co. up 2.73 percent to finish at NT$282.50.

In addition, Formosa Plastics Corp. rose 0.96 percent to close at NT$36.70 and Nan Ya Plastics Crop. added 0.64 percent to end at NT$31.65.

In the financial sector, Cathay Financial Holding Co. rose 1.63 percent to close at NT$56.10, and Fubon Financial Holding Co. ended up 0.90 percent at NT$78.10.

"Amid U.S. tariff polices, however, worries over rising inflation are running deeper, pushing up treasury yields, which could cap gains among global equities," Su said.

According to the TWSE, foreign institutional investors bought a net NT$16.97 billion worth of shares on the main board Monday.