Taiwan shares edge up on lackluster U.S. markets

Taipei, Aug. 26 (CNA) Shares in Taiwan closed slightly higher Tuesday after a lackluster performance on U.S. markets overnight ahead of the quarterly earnings report from U.S.-based artificial intelligence chip designer Nvidia Corp. due Thursday Taipei time, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 27.72 points, or 0.11 percent, at 24,305.10 after fluctuating between 24,113.03 and 24,382.42. Turnover totaled NT$514.01 billion (US$16.84 billion), compared with NT$431.83 billion a session earlier.

"The local main board fell into consolidation today, a reflection of the anemic U.S. markets overnight," Mega International Investment Services analyst Alex Huang said, referring to a 0.77 percent decline on the Dow Jones Industrial Average and a 0.22 percent drop on the tech-heavy Nasdaq index.

"After a soaring Monday (up 2.16 percent), investors shifted their attention back to fundamentals, paying close attention to Nvidia's results and guidance," Huang said. Monday's strong showing largely reflected dovish comments from the U.S. Federal Reserve Chair Jerome Powell over the weekend.

Despite consolidation mode turnover topped NT$500 billion, with a quarterly index adjustment by MSCI Inc. slated to come into effect after the market closed, Huang said.

"Large-cap electronics stocks largely moved in a narrow range," Huang said. "Fortunately, TSMC (Taiwan Semiconductor Manufacturing Co.) recouped its earlier losses, helping the Taiex stay afloat."

TSMC, the most heavily weighted local stock, rose 0.43 percent to close at NT$1,175.00, off a low of NT$1,160.00. TSMC's recovery from the day's low allowed the index to regain about 120 points. However, smartphone IC designer MediaTek Inc. fell 0.71 percent to end at NT$1,400.00.

Buying rotated to smaller IC designers with Global Unichip Corp., TSMC's application-specific integrated circuit (ASIC) design subsidiary, soaring 7.31 percent to close at NT$1,395.00, and AIchip Technologies Inc., another ASIC designer, rising 2.18 percent to end at NT$3,980.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 0.72 percent to close at NT$209.00, while Quanta Computer Inc., another AI supplier, lost 1.12 percent to end at NT$265.00.

Industrial PC stocks attracted rotational buying with Adlink Technology Inc. rising 1.29 percent to close at NT$62.80, and Advantech Co. gaining 0.94 percent to end at NT$322.00.

"Non-tech stocks largely moved in weakness but select 'military concept' stocks continued to steam ahead on an increase in defense spending in 2026," Huang said.

Among them, shares in drone maker Thunder Tiger Corp. surged 10 percent, the maximum daily increase, to close at NT$161.00, and Lungteh Shipbuilding Co. also jumped 10 percent to end at NT$139.00.

Elsewhere in the old economy sector, food brand Uni-President Enterprises Corp. lost 1.93 percent to close at NT$76.30, while Wei Chuan Foods Corp. ended up 0.32 percent at NT$15.65. In addition, Formosa Plastics Corp. rose 1.88 percent to close at NT$40.75, but Formosa Chemicals & Fibre Corp. lost 1.62 percent to end at NT$30.45.

In the financial sector, Fubon Financial Holding Co. shed 2.79 percent to close at NT$87.10, and Cathay Financial Holding Co. lost 1.86 percent to end at NT$63.40.

"After yesterday's gains, the upturn on the Taiex is expected to be limited with heavy technical resistance likely ahead of 24,500 points," Huang said.

According to the TWSE, foreign institutional investors sold a net NT$14.51 billion worth of shares on the main board Tuesday.