Taiwan shares end down before U.S. 'reciprocal tariffs' finalized

Taipei, July 7 (CNA) Shares in Taiwan came under pressure Monday amid cautious market sentiment, with investors anxiously waiting for news on "reciprocal tariffs" to be imposed by the United States following a 90-day pause which ends on July 9, dealers said.

After falling 0.73 percent on Friday, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 118.78 points, or 0.53 percent, at 22,428.72 after moving between 22,294.11 and 22,550.50. Turnover totaled NT$260.0 billion (US$8.97 billion).

U.S. President Donald Trump said over the weekend that his administration will send out letters to the first batch of 10-12 countries Monday to inform them of the "reciprocal tariffs" they will face, indicating he would not extend the 90-day pause.

"It seems that investors became more nervous for now as there is no information indicating how tariff talks between the U.S. and Taiwan have proceeded," Hua Nan Securities analyst Kevin Su said.

"Uncertainties continued to dominate the Taiex as the bellwether electronics sector failed to stage a rebound from Friday's slump," Su said.

The electronics sector lost 0.95 percent after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted local stock, fell 0.46 percent to close at NT$1,080.00, off a low of NT$1,070.00.

"TSMC appeared resilient and saw last ditch buying, helping the stock recoup part of its earlier losses to cap the downturn on the Taiex," Su said.

Among other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. shed 2.04 percent to end at NT$144.00, and smartphone IC designer MediaTek Inc. dropped 0.78 percent to close at NT$1,280.00.

Also in the tech sector, power management solution provider Delta Electronics Inc. shed 1.53 percent to end at NT$450.00, and artificial intelligence server maker Quanta Computer Inc. fell 0.36 percent to close at NT$277.00.

IPhone assembler and AI server supplier Hon Hai Precision Industry Co. ended unchanged at NT$161.00.

"Several major Financial stocks bucked the downturn on the broader market as the U.S. dollar staged a strong rebound against the Taiwan dollar today. Investors expect financial firms could see their foreign exchange losses reduced," Su said.

With the financial index up 0.94 percent, shares in Fubon Financial Holding Co. rose 1.23 percent to close at NT$82.00, and CTBC Financial Holding Co. gained 1.01 percent to end at NT$44.95.

Old economy industries appeared mixed, dealers said.

Formosa Plastics Corp. shed 3.03 percent to close at NT$35.20, and Nan Ya Plastics Corp. dropped 1.90 percent to end at NT$28.45.

In addition, Fortune Electric Co. fell 1.97 percent to finish at NT$548.00, and Shihlin Electric & Engineering Corp. shed 1.94 percent to end at NT$177.00.

On the other hand, escalating geopolitical unease pushed up so-called "military concept" stocks with drone maker Thunder Tiger Corp. rising 4.66 percent to close at NT$62.90, and Lungteh Shipbuilding Co. climbing 1.09 percent to end at NT$92.50.

In addition to the tariff issues, "investors had better pay close attention to the June sales reports for clues about the impact resulting from the recent rapid appreciation of the Taiwan dollar," Su added. TSMC is scheduled to report its sales on Thursday.

According to the TWSE, foreign institutional investors sold a net NT$5.79 billion worth of shares on the main board Monday.