Taiwan shares end up as electronics stocks lead rebound

Taipei, Dec. 2 (CNA) Shares in Taiwan closed higher Tuesday in a technical rebound from the previous slump as bargain hunters focused on select large-cap tech stocks, ignoring losses in the United States overnight, dealers said.

After falling 1.03 percent Monday, the Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 221.74 points, or 0.81 percent, at 27,564.27 after moving between 27,477.10 and 27,741.89. Turnover totaled NT$469.67 billion (US$14.94 billion).

"Today's rebound largely reflected continued optimism toward AI development," Hua Nan Securities analyst Kevin Su said. "TSMC (Taiwan Semiconductor Manufacturing Co.), one of the most important AI stocks here, climbed above the weakness seen yesterday, leading the broader market to move higher."

Contract chipmaker TSMC, which accounts for over 40 percent of the Taiex's weighting, rose 1.42 percent to close at NT$1,430.00, contributing about 160 points to the Taiex's rise.

But other major semiconductor stocks appeared mixed. Smartphone IC designer MediaTek Inc. fell 2.08 percent to end at NT$1,415.00, while IC packaging and testing services provider ASE Technology Holding Co. rose 1.78 percent to close at NT$228.50.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co., second to TSMC in market value, ended unchanged at NT$222.00.

"Certain raw material stocks in nontech industries also rode the waves of a technical rebound, including steel stocks, which were boosted by hopes that future reconstruction of war-torn Ukraine will boost demand," Su said.

China Steel Corp., the largest steel maker in Taiwan, rose 1.34 percent to close at NT$18.85 and Tung Ho Steel Corp. gained 1.28 percent to end at NT$71.40.

In addition, Formosa Plastics Corp. added 1.28 percent to close at NT$28.00, while Nan Ya Plastics Corp. ended down 2.03 percent at NT$41.00.

In the financial sector, which rose 1.28 percent, providing additional support to the broader market, Cathay Financial Holding Co. gained 2.78 percent to close at NT$66.60 and Fubon Financial Holding Co. added 0.33 percent to end at NT$92.10.

"Judging from today's movement, I think the Taiex has encountered stiff technical resistance ahead of 27,796 points, the intraday high on Nov. 28," Su said. "So, the index could continue to move in a narrow range shortly."

According to the TWSE, foreign institutional investors bought a net NT$13.53 billion worth of shares on the main board Tuesday.