Taiwan shares end sharply up as tech stocks gain after U.S. rally

Taipei, Dec. 22 (CNA) Shares in Taiwan closed sharply higher Monday, led by the electronics sector, after artificial intelligence-related stocks surged in the United States at the end of last week.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 453.29 points, or 1.64 percent, at 28,149.54 after moving between 27,986.66 and 28,168.75. Turnover totaled NT$493.05 billion (US$15.62 billion).

The market opened up 1.05 percent after a 1.31 percent rise in the tech-heavy Nasdaq index Friday, and momentum continued as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), a leading AI stock, pushed the broader market ahead, analysts said.

"It was no surprise that major local AI-related stocks followed a rebound staged by their U.S. counterparts," Concord Securities analyst Kerry Huang said. "TSMC took the lead to help the broader market jump past the hurdles ahead of 28,100 points."

After its American depositary receipts rose 1.50 percent Friday, TSMC rose 2.45 percent to close at NT$1,465.00. The stock, which accounts for around 40 percent of the stock exchange's capitalization, contributed about 280 points to the Taiex's rise and sent the electronics index up 2.02 percent.

Memory chip suppliers continued moving upwards due to a supply shortage.

Nanya Technology Corp. rose 3.15 percent to end at NT$180.00, while Powerchip Semiconductor Manufacturing Corp. soared 10 percent, the maximum daily increase, to close at NT$40.45 on reports that Micron Technology Corp. planned to work with it to produce more memory chips.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co., second to TSMC in market value, rose 1.13 percent to end at NT$224.00, and Delta Electronics Inc., a supplier of power management solutions for AI use, gained 4.61 percent to end at NT$953.00.

"Buying also spread to non-tech stocks with the electric machinery industry in focus, providing more support to the Taiex," Huang said.

Contributing to a 2.26 percent rise to the overall electric machinery index, Teco Electric & Machinery Co. rose 4.16 percent to close at NT$87.70 and Fortunate Electric Co. ended up 3.29 percent at NT$786.00.

Elsewhere in the old economy sector, cooking oil maker Taisun Enterprise Co. rose 0.28 percent to close at NT$18.20, but Uni-Enterprises Corp., another food brand, fell 0.77 percent to end at NT$71.80.

In the financial sector, which rose 0.63 percent, Cathay Financial Holding Co. rose 1.32 percent to close at NT$76.50, and Fubon Financial Holding Co. ended up 0.92 percent at NT$98.20.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$22.62 billion in shares on the market Monday.