Taiwan shares end moderately up as large-cap tech stocks stay resilient

Taipei, Sept. 3 (CNA) Shares in Taiwan closed moderately higher Wednesday as large-cap tech stocks stayed resilient, helping the broader market recoup earlier losses and shrug off overnight declines on Wall Street following a spike in U.S. Treasury yields, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 83.52 points, or 0.35 percent, at 24,100.30 after moving between 23,925.49 and 24,103.23.

Turnover totaled NT$365.70 billion (US$11.90 billion), down from NT$420.25 billion Tuesday.

"The rebound in the Taiex reflected a bet that U.S. markets will open higher to reverse Tuesday's losses given current gains in futures," said Kerry Huang, an analyst with Concord Securities.

"But the local index still stayed in consolidation, with turnover reduced as investors await more economic data for clues about how the U.S. Federal Reserve will implement a rate cut cycle," Huang said, referring to the August jobs report due Friday.

The electronics sector rose 0.18 percent, supported by Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, which closed flat at NT$1,160.00 after recovering from a low of NT$1,145.00.

Among other semiconductor heavyweights, smartphone IC designer MediaTek Inc. rose 2.67 percent to NT$1,345.00 and memory chip supplier Nanya Technology Corp. gained 1.53 percent to NT$46.35, while contract chipmaker United Microelectronics Corp. ended unchanged at NT$40.90.

Also in tech, iPhone assembler Hon Hai Precision Industry Co., second to TSMC in market value, gained 1.01 percent to NT$200.50, while PC brand Acer Inc. rose 2.79 percent to NT$29.50.

"As Beijing unveiled its latest weapons in a military parade Wednesday, investors rushed to buy 'military concept' stocks, expecting Taiwan to boost defense spending," Huang said.

Fighter jet developer Aerospace Industrial Development Corp. and aircraft maintenance provider Air Asia Co. both hit the 10 percent daily limit to close at NT$67.10 and NT$72.70, respectively. Lungteh Shipbuilding Co. and drone maker Thunder Tiger Corp. also jumped 10 percent to NT$158.50 and NT$174.00, respectively.

Elsewhere, EVA Airways added 0.25 percent to NT$39.55, while China Airlines fell 0.46 percent to NT$21.45.

The financial sector edged down 0.06 percent, with Fubon Financial Holding Co. losing 0.92 percent to NT$86.00 and Cathay Financial Holding Co. unchanged at NT$63.50.

"Caution is expected to dictate market sentiment before Friday's jobs data," Huang said. "The Taiex could move slightly up or down around the 20-day moving average of 24,160 points."

According to the TWSE, foreign institutional investors bought a net NT$8.22 billion worth of shares on the main board Wednesday.