Taiwan shares close lower as U.S.-China trade tensions derail rebound

Taipei, Oct. 14 (CNA) Shares in Taiwan closed lower Tuesday after coming off an early rebound as renewed concerns over U.S.-China trade tensions prompted investors to lock in profits from a morning rally, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 130.27 points, or 0.48 percent, at 26,793.15 after moving between 26,764.06 and 27,507.16. Turnover totaled NT$683.17 billion (US$22.21 billion).

The market opened up 1.36 percent, tracking overnight gains on Wall Street after U.S. President Donald Trump adopted a conciliatory tone toward China. Buying momentum lifted the Taiex by about 580 points at its intraday high, before sentiment turned cautious mid-morning.

Selling pressure emerged after 10:30 a.m. when China's Commerce Ministry vowed to "fight till the end" against U.S. tariff measures, while confirming that working-level talks were continuing this week. The mood was further weighed by reports that both sides would begin imposing new port fees on each other's vessels starting Tuesday, dealers said.

"It seems there is still no clear path to ease trade tensions," said Kevin Su, an analyst at Hua Nan Securities. "The new port fees could fuel inflationary pressure, adding uncertainty to the U.S. Federal Reserve's current rate-cut cycle."

Su said profit-taking hit the electronics sector hardest as investors trimmed positions after the early rally.

Smartphone chip designer MediaTek Inc. fell 0.76 percent to NT$1,305.00, while IC packaging and testing services provider ASE Technology Holding Co. dropped 2.02 percent to NT$169.50. Memory chipmaker Nanya Technology Corp. slumped 6.80 percent to NT$89.10.

Among large tech stocks, Hon Hai Precision Industry Co. (Foxconn) lost 3.29 percent to NT$206.00, and Delta Electronics Inc. declined 3.69 percent to NT$992.00.

"The silver lining was TSMC, which managed to stay in positive territory; otherwise, the Taiex would have fallen further," Su said, adding that investors remain optimistic about the chipmaker's strength in AI-related products.

Contract chipmaker Taiwan Semiconductor Manufacturing Co., the market's most heavily weighted stock, rose 0.71 percent to NT$1,425.00, off a high of NT$1,460.00.

Funds also rotated into lagging shipping plays, Su added. Evergreen Marine Corp. rose 5.59 percent to NT$189.00, while Yang Ming Marine Transport Corp. jumped 10 percent, the daily limit, to NT$56.70.

In other sectors, Formosa Plastics Corp. fell 2.23 percent to NT$37.35, and Nan Ya Plastics Corp. shed 4.06 percent to NT$40.20. Among financials, Cathay Financial Holding Co. gained 0.31 percent to NT$65.50, and Fubon Financial Holding Co. added 0.46 percent to NT$88.20.

According to the TWSE, foreign institutional investors sold a net NT$16.35 billion worth of shares on the main board Tuesday.