
Taipei, July 1 (CNA) Shares in Taiwan staged a strong rebound Tuesday after slumping the previous session, helped by a rally on U.S. markets overnight amid optimism about tariff talks between the United States and its trading partners, dealers said.
After falling 1.44 percent on Monday, the Taiex, the Taiwan Stock Exchange's weighted index, ended up 297.70 points, or 1.34 percent, at 22,553.72 after moving between 22,401.58 and 22,730.76.
Turnover totaled NT$403.16 billion (US$13.824 billion), compared with NT$365.76 billion a session earlier.
The market opened up 0.74 percent as the tech-heavy Nasdaq index hit a new high overnight and buying continued, focusing on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), dealers said.
TSMC, the most heavily weighted stock here, rose 2.36 percent to close at NT$1,085.00, helping push the electronics index 1.66 percent higher and contributing about 200 points to the Taiex's rise.
"Judging from today's movement, I think many investors were betting trade deals will be struck by Washington and its trading partners so they rushed to pick up shares, including TSMC, which was hit hard yesterday," MasterLink Securities analyst Tom Tang said.
"The expanded turnover indicated many investors were willing to trade."
Also in the semiconductor industry, smartphone IC designer MediaTek Inc. gained 2.00 percent to end at NT$1,275.00 and application specific integrated circuit (ASIC) designer Alchip Technologies Inc. gained 2.91 precent to close at NT$3,185.00.
Bucking the uptrend, IC packaging and testing services provider ASE Technology Holding Co. ended down 1.36 percent at NT$145.50.
"The buying also reflected an upbeat mood over artificial intelligence development so the gains were more than just technical in nature," Tang said.
Hon Hai Precision Industry Co., an iPhone assembler and AI server maker, rose 2.80 percent to close at NT$165.50, and Quanta Computer Inc., another AI server supplier, added 2.37 percent to end at NT$281.00.
In addition, Elite Material Co., a supplier of base materials for the production of printed circuit boards, which are in strong demand in the current AI era, gained 2.04 percent to close at NT$900.00.
Also, Asia Vital Components Co., a cooling solutions provider for AI servers, gained 1.62 percent to end at NT$281.00.
Riding the wave of the higher U.S. markets, Tang said, old economy sectors played catch-up with their tech counterparts.
With the paper index up 1.73 percent, paper supplier Cheng Loong Corp. rose 1.70 percent to close at NT$17.90, and rival YFY Inc. gained 2.84 percent to end at NT$23.55.
In addition, property developer Kindom Development Co. added 1.59 percent to close at NT$51.20, and King's Town Construction Co. grew 1.44 percent to end at NT$45.65.
The financial sector, however, underperformed the Taiex, finishing 0.18 percent lower. Fubon Financial Holding Co. closed 0.12 percent higher at NT$83.20, and Cathay Financial Holding Co. ended up 0.96 percent at NT$63.40.
"Today's gains have made the Taiex technically healthier, paving the way for more of an upturn," Tang said. "It is possible TSMC will challenge NT$1,160.00 (an intraday high seen on Jan. 17) soon to boost the Taiex."
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$47.15 billion in shares on the market Tuesday.
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