Taiwan shares end up but come off high amid U.S. volatility worries

Taipei, Oct. 1 (CNA) Shares in Taiwan closed higher but came off the day's high Wednesday as some investors shifted to the sell side amid concerns over possible volatility on U.S. markets following the shutdown of the U.S. government, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 162.37 points, or 0.63 percent, at 25,982.91 after hitting the day's high of 26,325.79. Turnover totaled NT$455.71 billion (US$14.96 billion).

"The initial strong showing today came largely as contract chipmaker TSMC (Taiwan Semiconductor Manufacturing Co.) moved sharply higher with buying sparked by the gains posted by chip designer Nvidia Corp. overnight," MasterLink Securities analyst Tom Tang said.

"However, part of the early upturn was eroded due to losses among U.S. futures prompting investors to fear U.S. spot market volatility on a government shutdown," Tang said.

TSMC, the most heavily weighted local stock, rose 1.53 percent to close at NT$1,325.00, coming off a high of NT$1,350.00, while the electronics index came off a high of 1,554.60 to end at 1,518.26, up 0.89 percent.

Other semiconductor stocks appeared mixed with memory chip supplier Nanya Technology Corp. rising 4.38 percent to end at NT$76.20, but smartphone IC designer MediaTek Inc. fell 2.28 percent to close at NT$1,285.00, and IC packaging and testing services provider ASE Technology Holding Co. dropped 0.61 percent to end at NT$163.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, rose 1.39 percent to close at NT$219.00, while Quanta Computer Inc., another AI server supplier, ended down 1.21 percent to finish at NT$286.50.

"When the electronics sector attracted more of the market spotlight, nontech stocks largely moved in the doldrums with only some exceptions due to their ties with tech partners," Tang said.

Teco Electric & Machinery Co. soared 10 percent, the maximum daily increase, to end at NT$104.50 on its partnership with Hon Hai to boost AI infrastructure capabilities. In addition, Taiwan Glass Industry Corp. gained 2.01 percent to end at NT$27.95 on reports that the company's glass fiber is used in AI-related devices.

On the other hand, Asia Cement Corp. lost 0.83 percent to close at NT$323.80, and rival TCC Group Holdings Co. shed 2.10 percent to end at NT$37.35. In addition, Formosa Chemicals & Fiber Corp. dropped 1.85 percent to close at NT$29.20, and Formosa Plastics Corp. ended down 0.78 percent at NT$27.95.

In the financial sector, which fell 0.17 percent, shares in Fubon Financial Holding Co. fell 1.02 percent to close at NT$87.40, and Cathay Financial Holding Co. ended down 0.46 percent at NT$65.30.

"As the U.S. Federal Reserve has started a rate cut cycle, foreign institutional investors are expected to move more funds into the region to support the Taiex," Tang said.

According to the TWSE, foreign institutional investors bought a net NT$12.66 billion worth of shares on the main board Wednesday.