Taiwan shares end up as TSMC gains amid Fed rate cut hopes

Taipei, Dec. 5 (CNA) Taiwan shares closed higher Friday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) rebounded from an early low, boosted by growing expectations that the U.S. Federal Reserve will cut interest rates next week, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 185.18 points, or 0.67 percent, at the day's high of 27,980.89, after falling to a low of 27,738.50. Turnover totaled NT$444.85 billion (US$14.19 billion).

Cathay Futures Consultant analyst Tsai Ming-han said sentiment improved after a weaker-than-expected ADP private-sector jobs report overnight, which raised the probability of a Fed rate cut to roughly 87 percent.

"A rate cut makes tech stocks more attractive compared with their dividend yields," Tsai said. "TSMC therefore climbed from earlier weakness and led the broader market higher."

TSMC, which accounts for more than 40 percent of the Taiex's total market cap, rose 1.04 percent to close at NT$1,460.00, off a low of NT$1,440.00. The stock contributed around 120 points to the index's rise, and sending the electronics index down 0.98 percent.

Buying also spread to other semiconductor stocks, with smartphone IC designer MediaTek Inc. gaining 1.42 percent to end at NT$1,425.00 and smaller contract chipmaker United Microelectronics Corp. adding 1.88 percent to close at NT$48.90.

Tsai said continued enthusiasm for artificial intelligence development further supported tech stocks. AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 1.09 percent to NT$231.00, while Quanta Computer Inc., another major AI server supplier, added 1.02 percent to NT$297.50.

Robot-related stocks also surged after reports that the Trump administration is considering policy support for robotics development. Machine tool maker Ying Han Technology Co. jumped 10 percent, the daily limit, to NT$42.70.

Non-tech stocks were mixed. Wei Chuan Foods Corp. fell 0.67 percent to close at NT$14.90, while rival Uni-President Enterprises Corp. rose 0.92 percent to NT$76.40. In addition, Formosa Chemicals & Fibre Corp. slipped 1.74 percent to close at NT$33.85, while Nan Ya Plastics Corp. ended unchanged at NT$63.40.

In the financial sector, Fubon Financial Holding Co. rose 0.21 percent to close at NT$94.90, while Cathay Financial Holding Co. fell 0.43 percent to end at NT$68.70.

According to the TWSE, foreign institutional investors bought a net NT$38.88 billion worth of shares on the main board Friday.