Taiwan shares end down amid tariff worries

Taipei, July 8 (CNA) Shares in Taiwan closed lower Tuesday on lingering concerns over U.S. tariff policies, though they pared earlier losses as Taipei and Washington continue negotiations, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 66.45 points, or 0.30 percent, at 22,362.27 after fluctuating between 22,190.46 and 22,375.65. Turnover totaled NT$272.03 billion (US$9.36 billion).

The local main board opened lower and extended losses, tracking an overnight slump on Wall Street after the Trump administration sent letters to the first 14 countries that failed to reach a deal with Washington, warning them of reciprocal tariffs, dealers said.

However, bargain hunters emerged late in the session, picking up shares of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), helping the broader market recover part of its earlier losses and return to near the 20-day moving average of 22,309 points, dealers added.

"Investors appeared cautious, anxiously awaiting a possible trade agreement between Taiwan and the U.S.," said Adam Lin, an analyst at Moore Securities Investment Consulting. "Uncertainty remains -- it's the last thing investors want to see."

"Foreign institutional investors continue to hold a large number of short futures contracts, indicating they remain wary of the tariff issues," Lin said.

Following last-ditch buying by bargain hunters, TSMC -- the most heavily weighted stock on the local market -- closed unchanged at NT$1,080.00, recovering from a low of NT$1,065.00. TSMC's rebound helped the Taiex recoup about 120 points.

"However, the stock still faces strong technical resistance around NT$1,160 -- the historic intraday high set on Jan. 7 -- and any rebound is likely to be limited," Lin said.

Other semiconductor stocks mostly moved lower, with smartphone IC designer MediaTek Inc. falling 0.78 percent to close at NT$1,270.00, and IC packaging and testing services provider ASE Technology Holding Co. slipping 0.69 percent to NT$143.00. Bucking the downturn, smaller contract chipmaker United Microelectronics Corp. rose 0.58 percent to end at NT$43.70.

Also in the tech sector, iPhone assembler and AI server developer Hon Hai Precision Industry Co. fell 1.24 percent to close at NT$159.00, while power management solutions provider Delta Electronics Inc. rose 0.33 percent to end at NT$451.50.

Lin said old economy and financial stocks also weakened due to tariff concerns.

Despite a rise in international crude oil prices, Formosa Plastics Corp. fell 1.70 percent to close at NT$34.60, while Nan Ya Plastics Corp. dropped 1.41 percent to end at NT$28.05. Asia Cement Corp. also declined 1.66 percent to close at NT$41.55, and rival TCC Group Holdings Co. slipped 2.01 percent to finish at NT$24.35.

However, food brand Uni-President Enterprises Corp. rose 1.33 percent to close at NT$83.80, while cooking oil supplier Taisun Enterprise Co. gained 0.51 percent to finish at NT$19.65.

In the financial sector, which declined 0.16 percent, Fubon Financial Holding Co. fell 0.98 percent to close at NT$81.20, while Cathay Financial Holding Co. dropped 0.32 percent to end at NT$61.60.

According to the TWSE, foreign institutional investors bought a net NT$350 million worth of shares on the main board Tuesday.