Taiwan shares end up but come off high amid tariff concerns

Taipei, June 3 (CNA) Taiwan shares closed higher Tuesday, though large-cap semiconductor stocks lost some earlier gains amid ongoing concerns over the Trump administration's tariff policies-particularly the potential imposition of levies on imported chips.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 124.22 points, or 0.59 percent, to close at 21,126.93 after fluctuating between 21,110.63 and 21,303.21. Turnover totaled NT$350.28 billion (US$11.68 billion).

"The local main board staged a technical rebound from yesterday's slump, with buying initially focused on the bellwether electronics sector," said Alex Huang, an analyst at Mega International Investment Services, referring to Monday's 1.61 percent decline.

"But investors remained cautious about a possible tariff on semiconductors from the White House, as the products are the backbone of Taiwan's exports," Huang said. "So, semiconductor heavyweights saw much of their earlier gains eroded, capping the broader market's upturn.

The electronics index closed up 0.55 percent at 1,148.69, retreating from an intraday high of 1,162.04. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the market, rose 0.42 percent to close at NT$950.00, down from a high of NT$965.00. TSMC's pullback from its peak shaved about 120 points off the Taiex.

Among other semiconductor stocks that also retreated from intraday highs, smartphone IC designer MediaTek Inc. gained 1.19 percent to close at NT$1,275.00, while IC packaging and testing services provider ASE Technology Holding Co. slipped 0.74 percent to NT$133.50.

Following a 1.67 percent rise overnight by American AI chip designer Nvidia Corp., AI server maker Quanta Computer Inc. climbed 1.48 percent to close at NT$275.00. LITE-ON Technology Corp., which produces power management solutions for AI servers, added 1.98 percent to finish at NT$103.00, while AI graphics card vendor Giga-Byte Technology Co. surged 6.20 percent to close at NT$151.50.

Going against the upward trend, iPhone assembler and AI server maker Hon Hai Precision Industry Co. slipped 0.66 percent to close at NT$151.50.

Some funds shifted from semiconductor stocks to the financial sector Tuesday, as foreign institutional investors have shown growing interest in financial stocks in recent sessions," Huang said. "With tech stocks vulnerable to U.S. tariff concerns, financial stocks appeared to offer a safer haven.

The financial sector rose 1.73 percent, led by Cathay Financial Holding Co., which gained 5.79 percent to close at NT$63.90. Fubon Financial Holding Co. added 2.20 percent to end at NT$83.60. Yuanta Financial Holding Co. climbed 3.01 percent to close at NT$32.55, while CTBC Financial Holding Co. finished up 2.87 percent at NT$43.00.

In the traditional economy sector, Evergreen Marine Corp., Taiwan's largest container shipper, rose 2.23 percent to close at NT$252.50, while rival Wan Hai Lines Ltd. gained 1.82 percent to end at NT$112.00, supported by rising freight rates.

Amid government efforts to promote renewable energy development, J&V Energy Technology Co. rose 5.36 percent to close at NT$167.00, while Foxwell Power Co. gained 3.83 percent to end at NT$122.00.

"In addition to tariff concerns, Taiwanese exporters are now facing a sharp rise in the value of the Taiwan dollar," Huang said. "Investors should closely monitor how these companies report their May sales amid the stronger currency."

According to the TWSE, foreign institutional investors sold a net NT$13.35 billion worth of shares on the main board Tuesday.