Taiwan shares end down after bad job data, market showing in U.S.

Taipei, Aug. 4 (CNA) Shares in Taiwan closed lower Monday as selling was triggered by losses on the U.S. markets at the end of last week on poor job data for July, but the market did recoup some of the early losses, dealers said.

The Taiex, the Taiwan Stock Exchange's weighted index, edged down 55.44 points, or 0.24 percent, at the day's high of 23,378.94 after hitting a low of 23,151.65. Turnover totaled NT$330.74 billion (US$11.06 billion).

"The U.S. markets continued to dictate the local market as the Taiex came under heavier pressure initially in a knee-jerk reaction to the U.S. losses," Moore Securities Investment Consulting analyst Adam Lin said.

He was referring to a 1.23 percent fall in the Dow Jones Industrial Average and a 2.24 percent decline in the tech-heavy Nasdaq index on Friday after weaker-than-expected July nonfarm payrolls data and the huge downward revision of May and June jobs data.

"The selling on the Taiex was not intolerable at all as many investors were willing to pick up bargains, thinking the worst from the tariff issues was over and that the Taiex would not plunge as it did in April," Lin said.

April was when the Donald Trump administration first announced its sweeping tariffs, including a 32 percent across-the-board tariff against goods made in Taiwan, that sent the Taiex plunging nearly 20 percent in a week to a closing low of 17,391.76.

Despite a 2.65 percent fall in American depositary receipts on Friday, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock here, fell only 0.44 percent to close at NT$1,135.00, off a low of NT$1,125.00.

TSMC's recovery from the day's low helped the broader market recoup about 80 points.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. lost 1.48 percent to end at NT$1,330.00, and IC packaging and testing services provider ASE Technology Holding Co. shed 3.28 percent to close at NT$147.50.

However, United Microelectronics Corp., a smaller contract chipmaker, ended up 0.37 percent at NT$41.20.

Also supported by late-session buying, iPhone assembler and AI server maker Hon Hai Precision Industry Co. lost 0.83 percent to close at NT$180.00, and Quanta Computer Inc., another AI server supplier, ended down 1.40 percent at NT$281.00.

"Underperforming the broader market, petrochemical stocks took a beating on falling crude prices after OPEC+ agreed to further increase production in September," Lin said.

With the petrochemical index down 5.48 percent, Formosa Plastics Corp. shed 7.00 percent to close at NT$37.85 and Formosa Petrochemical Corp. slid 6.97 percent to end at NT$39.40.

In addition, Formosa Chemicals & Fibre Corp. lost 5.57 percent to close at NT$26.30, and Nan Ya Plastics Corp. ended down 5.40 percent at NT$37.65.

Bucking the Taiex's downturn, the financial index rose 1.60 percent.

"I suspect government-led funds stood behind the buying to bolster investors' confidence," Lin said.

In the sector, Cathay Financial Holding Co. rose 2.12 percent to close at NT$62.50, and Fubon Financial Holding Co. gained 1.69 percent to end at NT$84.00.

"I expect the Taiex's consolidation will continue as many investors are waiting for a possible tariff on semiconductors," Lin said.

Despite the fall in the index, foreign institutional investors bought a net NT$11.20 billion in shares on the market Monday.