Taiwan shares jump over 480 points as TSMC hits new closing high

Taipei, Oct. 15 (CNA) Shares in Taiwan surged more than 480 points Wednesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) closed at a new high, boosted by renewed hopes of a U.S. Federal Reserve rate-cut cycle following dovish comments from Fed Chair Jerome Powell, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended 482.56 points, or 1.80 percent, at the day's high of 27,275.71, off a low of 26,773.15. Turnover totaled NT$500.11 billion (US$16.34 billion).

"Powell's remarks, which renewed hopes for a Fed rate-cut cycle, helped U.S. markets recoup overnight losses, prompting Asian markets including Taiwan to follow suit," Cathay Futures analyst Tsai Ming-han said.

On Tuesday, Powell said recent data pointed to a weakening job market, suggesting the Fed could cut rates again this month.

"Funds flocked into the local market this morning, with foreign investors making TSMC their top pick," Tsai said. "The strong buying pushed TSMC shares to a record high amid optimism that the chipmaker will offer upbeat guidance at its investor conference Thursday during the AI boom."

TSMC, the most heavily weighted stock on the local market, rose 2.81 percent to close at the day's high of NT$1,465.00, contributing about 320 points to the Taiex's rise.

Its IC design subsidiary Global Unichip Corp. gained 2.08 percent to close at NT$1,475.00, while IC assembly equipment supplier Scientech Corp. added 3.84 percent to close at NT$379.00. IC packaging and testing firm ASE Technology Holding Co. advanced 5.01 percent to NT$178.00.

Some AI server suppliers lagged behind their semiconductor peers, with Hon Hai Precision Industry Co. edging up 0.24 percent to NT$206.50 and Quanta Computer Inc. adding 0.70 percent to NT$286.00.

With TSMC lifting the electronics index by 2.26 percent, traditional industry stocks were mostly left behind, especially raw material suppliers. China Steel Corp., the largest steel maker in Taiwan, lost 0.80 percent to NT$18.70, Tung Ho Steel Corp. dropped 0.97 percent to NT$61.50, Shihlin Paper Corp. fell 0.92 percent to NT$54.10, and Cheng Loong Corp. declined 1.14 percent to NT$17.40.

On optimism over demand for electrical equipment in post-disaster recovery work in Hualien, Teco Electric & Machinery Co. rose 3.85 percent to NT$108.00, and Fortune Electric Co. gained 3.63 percent to NT$571.00.

In the financial sector, Cathay Financial Holding Co. rose 1.27 percent to close at NT$66.40, and Fubon Financial Holding Co. gained 1.59 percent to end at NT$89.10.

"Although the Taiex returned to the 27,000-point level, turnover fell, suggesting that some investors preferred to stay on the sidelines to watch U.S.-China trade developments," Tsai said.

Despite the Taiex's rise, foreign institutional investors sold a net NT$14.73 billion worth of shares on the main board Wednesday.