Taiwan shares jump as tech, financial buying resumes

Taipei, May 21 (CNA) Taiwan shares rose sharply on Wednesday, gaining nearly 1.3 percent as investors resumed buying large-cap tech and financial stocks after several sessions of consolidation, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), climbed 277.88 points, or 1.29 percent, to close at 21,803.91. It fluctuated between 21,603.58 and 21,879.24, with turnover reaching NT$297.01 billion (US$9.85 billion).

"Recent sluggish trading was driven by concerns over U.S. market volatility following Moody's downgrade of the U.S.' credit rating," said Alex Huang, an analyst at Mega International Investment Services. "However, U.S. markets held up well, which helped restore investor confidence."

Huang noted that optimism surrounding the AI boom encouraged investors to snap up AI-related tech stocks, while financial shares also attracted buying interest.

April's export order data, released Tuesday, showed sustained demand for AI-related products, particularly from the U.S., Huang added.

Among tech gainers, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) rose 1.23 percent to close at NT$990.00, contributing nearly 100 points to the Taiex and helping lift the electronics subindex by 1.45 percent.

Other semiconductor stocks also performed strongly. Smartphone IC designer MediaTek Inc. climbed 1.90 percent to end at NT$1,340.00, microcontroller supplier Nuvoton Technology Corp. rose 2.52 percent to closed at NT$73.30, and application-specific integrated circuit (ASIC) designer AIchip Technologies Inc. advanced 4.01 percent to end at NT$2,980.00.

AI hardware suppliers benefited from upbeat sentiment surrounding Computex 2025, where industry leaders such as Nvidia CEO Jensen Huang (黃仁勳) continue to highlight growth prospects.

AI server maker Quanta Computer Inc. gained 2.06 percent to close at NT$272.00, with rival Wistron Corp. adding 3.20 percent to end at NT$113.00, and AI graphics card vendor Giga-Byte Technology Co. rising 1.17 percent to close at NT$260.00.

Meanwhile, iPhone assembler and AI server manufacturer Hon Hai Precision Industry Co. added 0.65 percent to end at NT$155.00.

The financial sector, seen as undervalued, played catch-up with tech stocks. Cathay Financial Holding Co. rose 3.25 percent to closed at NT$63.50, CTBC Financial Holding Co. added 2.99 percent to end at NT$43.00, and Fubon Financial Holding Co. increased 0.99 percent to close at NT$81.50.

However, Mega Financial Holding Co. slipped 0.36 percent to end at NT$41.15.

Buying interest also extended to select old economy stocks. Fortune Electric Co. rose 1.27 percent to close at NT$479.00, while Chung-Hsin Electric & Machinery Manufacturing Co. gained 1.34 percent to end at NT$151.50.

Among container cargo shipping stocks, Wan Hai Lines Ltd. climbed 2.68 percent to close at NT$115.00, although rival Evergreen Marine Corp. declined 0.39 percent to end at NT$256.50.

"Despite the gains, relatively low turnover suggests investors remain cautious, awaiting a U.S. decision on tariffs for foreign-made semiconductors," Huang said. He also noted that technical resistance remains high near the 22,000-point level.

According to the TWSE, foreign institutional investors bought a net NT$30.23 billion in shares on Wednesday.