Taiwan shares rise following continued TSMC strength

Taipei, June 11 (CNA) Shares in Taiwan closed higher Wednesday, breaking through stiff technical resistance ahead of the 240-day moving average of 22,300 points, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) extended gains amid optimism over U.S.-China trade talks, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 227.96 points, or 1.02 percent, at 22,470.10 after moving between 22,294.60 and 22,470.10. Turnover totaled NT$395.17 billion (US$13.22 billion).

"Look at today's turnover, closer to the NT$400 billion mark. I think many investors are now willing to chase prices as they embrace high hopes for a positive conclusion to the U.S.-China negotiations," Hua Nan Securities analyst Kevin Su said.

The local main board followed U.S. markets, where tech stocks continued to rise overnight after U.S. Commerce Secretary Howard Lutnick told reporters the talks with China "are going really, really well."

"So, we have TSMC acting as an anchor to push the Taiex higher, helping the index overcome technical resistance ahead of the 240-day moving average and become technically healthier," Su said. "I expect the uptrend to continue."

After its American depositary receipts (ADRs) rose 2.64 percent overnight, TSMC, the most heavily weighted stock on the local stock market, gained 1.92 percent to close at NT$1,065.00, pushing the electronics index up 1.29 percent and contributing about 160 points to the Taiex rise.

Among other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. gained 2.11 percent to end at NT$145.50, and TSMC's IC assembly equipment supplier Scientech Corp. added 1.48 percent to close at NT$309.00. Bucking the upturn, smartphone IC designer MediaTek Inc. fell 1.50 percent to end at NT$1,315.00.

Optimism over artificial intelligence development boosted AI-related stocks, with Asia Vital Components Co., a provider of cooling solutions for AI applications, rising 3.28 percent to close at NT$724.00, and cloud services supplier Wiwynn Corp. gaining 1.61 percent to end at NT$2,525.

In addition, iPhone assembler and AI server maker Hon Hai Precision Industry Co. added 0.32 percent to close at N$156.00, while Quanta Computer Inc., another AI server supplier, ended down 0.18 percent at NT$283.00.

"Last ditch buying boosted large-cap financial stocks, lending further support to the Taiex," Su said.

In the financial sector, which rose 0.56 percent, Cathay Financial Holding Co. rose 3.64 percent to close at NT$68.40 and Fubon Financial Holding Co. gained 2.74 percent to end at NT$90.10.

Old economy stocks appeared mixed, Su said.

On the back of growing demand for container cargo shipping space, Evergreen Marine Corp. rose 2.11 percent to close at NT$241.50, while rival Wan Hai Lines Ltd. gained 5.45 percent to end at NT$106.50.

Meanwhile, shipbuilder CSBC Corp. soared 10 percent - the maximum daily increase - to close at NT$17.75, after reporting consolidated sales in May that surged more than 800 percent from the previous month.

Elsewhere in the old economy sector, Shihlin Paper Corp. dropped 1.19 percent to close at NT$58.30 and Chung Hwa Pulp Corp. ended down 1.21 percent at NT$12.20.

"Washington is set to release its May inflation data later today. It's worth watching for more clues about the Federal Reserve's policy direction," Su said.

According to the TWSE, foreign institutional investors bought a net NT$7.93 billion worth of shares on the main board Wednesday.