Taiwan shares end up as TSMC leads rebound

Taipei, July 9 (CNA) Shares in Taiwan came off earlier lows to close higher Wednesday, with Taiwan Semiconductor Manufacturing Co. (TSMC) leading the rebound, while a narrow range of trading continued amid lingering concerns over the Trump administration's tariff policies, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 164.74 points, or 0.74 percent, at 22,527.01 after moving between 22,211.10 and 22,527.01. Turnover totaled NT$310.46 billion (US$10.668 billion).

The market opened lower and continued to fall to the day's low in early morning trading, with selling triggered by tariff concerns, dealers said.

The pressure stemmed from fears that Taiwan has not yet reached a deal with the United States to reduce the 32 percent "reciprocal tariff" announced by U.S. President Donald Trump on April 2, ahead of the end of the 90-day pause declared on April 9, they said.

However, the electronics sector regained its footing to push the Taiex over high technical hurdles ahead of the 10-day moving average at around 22,500 points by the end of the session, dealers added.

"The tariff issue remains a headache for investors as the 90-day pause on tariffs is coming to end," Cathay Futures Consultant analyst Tsai Ming-han said. "Despite the gains from late session buying, the Taiex still moved in a narrow range."

"The silver lining was that investors appeared calmer compared with the panic sell-off seen in April, when tariffs were announced for the first time," Tsai said, referring to April 7, when the Taiex, posted its steepest single-day decline in history, falling 9.7 percent.

"Thanks to a rebound by TSMC, along with other semiconductor giants, the Taiex returned to positive territory," Tsai said.

TSMC, the most heavily weighted local stock, rose 0.93 percent to close at NT$1,090.00. The stock's recovery from its low, helped the broader market recoup about 200 points.

Other chip stocks also recovered from their lows with TSMC's IC assembly equipment supplier Scientech Corp. up 3.99 percent to end at NT$351.50, and IC packaging and testing services provider ASE Technology Holding Co. up 2.45 percent to close at NT$146.50.

Smartphone IC designer MediaTek Inc. soared 6.69 percent to end at NT$1,355.00.

Tsai said most old economy stocks moved in weakness with the exception of copper-related stocks on a spike in copper prices after Trump said he will impose a 50 percent tariff on copper imports.

Among them, shares in First Copper Technology Co. surged 7.92 percent to close at NT$34.75 and Hua Eng Wire and Cable Co. gained 3.18 percent to end at NT$25.95.

Elsewhere in the old economy sector, Formosa Plastics Corp. fell 1.16 percent to close at NT$34.20, and Nan Ya Plastics Corp. lost 2.14 percent to end at NT$27.45.

In addition, Eclat Textile Co. fell 1.76 percent to close at NT$417.50, and rival Far Eastern New Century Corp. dropped 0.92 percent to end at NT$32.25.

In the financial sector, which lost 0.71 percent, Fubon Financial Holding Co. fell 1.11 percent to close at NT$80.30, and Cathay Financial Holding Co. dropped 0.81 percent to end at NT$61.10.

"The Taiex has a cap at around 22,800 points unless turnover expands to NT$400 billion or higher to allow heavyweights to take off," Tsai said.

According to the TWSE, foreign institutional investors bought a net NT$7.52 billion worth of shares on the main board Wednesday.