Taiwan shares soar as TSMC moves closer to NT$1,000 mark

Taipei, May 14 (CNA) Shares in Taiwan closed more than 450 points higher Wednesday, led by gains in contract chipmaker TSMC, which neared the NT$1,000 (US$33.08) mark following an overnight rally in U.S. tech stocks, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange, closed up 452.73 points, or 2.12 percent, at the day's high of 21,782.87, after dipping to a low of 21,552.42. Turnover totaled NT$409.333 billion.

TSMC rose 3.10 percent to close at NT$999.00, its highest closing price since March 3 when it ended at NT$1,005.00. The stock's gains added about 240 points to the Taiex and lifted the electronics index and semiconductor sub-index by 2.64 percent and 3.80 percent, respectively.

"TSMC and other electronics attracted strong buying as investors took cues from gains by U.S. AI chip designer Nvidia overnight," equity market analyst Andy Hsu said, referring to a 5.63 percent jump in Nvidia shares after the company and its peers announced AI deals in the Middle East.

"So, these AI-related stocks led the Taiex higher, helping the broader market stay above the 60-day moving average of 21,320 points for the second straight session and making the main board technically healthier," Hsu said.

Among other AI-related stocks, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 3.16 percent to close at NT$163.00, and fellow AI server supplier Quanta Computer Inc. gained 5.53 percent to end at NT$276.50. AI graphics card vendor Giga-Byte Technology Co. also added 5.84 percent to finish at NT$263.00.

TSMC's buying momentum spread to other semiconductor stocks, with IC packaging and testing services provider ASE Technology Holding Co. rising 3.45 percent to close at NT$150.00.

Memory chip supplier Nanya Technology Corp. surged 10 percent, the maximum daily increase, to finish at NT$44.95 following reports that South Korea's Samsung Electronics Co. and SK Hynix Inc. had raised product prices.

"After the U.S. and China agreed to substantially cut tariffs for an initial 90 days following weekend talks, market sentiment improved significantly," Hsu said.

"In addition to tech stocks, many old economy stocks also benefited from this optimism, although the situation could worsen due to the unpredictable nature of U.S. President Donald Trump."

Hsu said the shipping industry continued to benefit from a surge in cargo volume, with Evergreen Marine Corp., Taiwan's largest container cargo shipper, rising 4.30 percent to close at NT$242.50. Rivals Wan Hai Lines Ltd. and Yang Ming Marine Transport Corp. gained 6.52 percent and 1.79 percent, respectively, ending at NT$98.00 and NT$79.40.

Elsewhere in the old economy sector, Formosa Plastics Corp. rose 2.50 percent to close at NT$36.90, and Nan Ya Plastics Corp. gained 2.08 percent to finish at NT$31.95.

Underperforming the broader market, property developer Kindom Development Co. dropped 1.47 percent to close at NT$53.70, while King's Town Construction Co. ended flat at NT$51.70.

"Despite the recent rebound in the Taiex, investors should remain cautious about how Trump will tax semiconductors, a key component of Taiwan's exports," Hsu said.

According to the TWSE, foreign institutional investors purchased a net NT$44.72 billion worth of shares on the main board Wednesday.