Taiex sees gains limited amid renewed concerns over U.S. tariff policies

Taipei, Feb. 23 (CNA) Shares in Taiwan closed higher but gains were capped Monday, the first trading session following the nine-day Lunar New Year holiday, as concerns over U.S. tariff policies rose after U.S. President Donald Trump imposed new global duties in the wake of a Supreme Court ruling against his "reciprocal" tariffs, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 167.55 points, or 0.50 percent, at 33,773.26 after moving between 33,663.02 and 34,212.38. Turnover totaled NT$902.08 billion (US$28.68 billion).

The market moved sharply higher by more than 600 points in the early morning session led by the electronics sector with buying sparked by gains enjoyed by U.S. tech stocks during the Lunar New Year holiday before contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) suffered profit taking, eroding part of the Taiex's gains by the end of the session, dealers said.

"Investors were haunted again by uncertainties relating to Trump's tariffs so when the index moved higher they rushed to pocket gains," Hua Nan Securities analyst Kevin Su said. "TSMC was the top target of late session selling as investors used the stock to control the movement of the Taiex" when February futures contracts were settled Monday.

TSMC, which accounts for more than 40 percent of total market value, fell 0.78 percent to close at NT$1,900.00, off a historical intraday high of NT$1,935.00. TSMC's fall from the day's high cost the Taiex about 280 points with the electronics index up only 0.09 percent.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. shed 3.23 percent to end at NT$1,795.00, and IC packaging and testing services provider ASE Technology Holding Co. fell 1.55 percent to close at NT$349.00.

However, memory chip suppliers continued to attract strong buying on a supply shortage with Winbond Electronics Corp. surging 10 percent, the maximum daily increase to close at NT$115.00, and Nanya Technology Corp. rising 3.96 percent to end at NT$289.00.

Also in the tech sector, shares in power management solution provider Delta Electronics Inc. rose 3.57 percent to close at NT$1,305.00, and Yageo Corp., the world's third-largest multi-layer ceramic capacitor maker, soared 10 percent to end at NT$281.50.

"When funds rotated out from large cap chip stocks like TSMC, investors chased the financial sector, giving additional support to the Taiex," Su said.

In the financial sector, which grew 2.71 percent, CTBC Financial Holding Co. rose 3.26 percent to close at NT$53.90, and KGI Financial Holding Co. gained 6.75 percent to end at NT$20.55.E. Sun Financial Holding Co. rose 2.05 percent to close at NT$34.85, and Mega Financial Holding Co, ended up 2.25 percent at NT$40.95.

With many old economy stocks also benefiting from rotational buying, Nan Ya Plastics Corp. gained 6.09 percent to close at NT$83.60, and Formosa Plastics Corp. added 1.18 percent to end at NT$47.05.

In addition, food brand Uni-President Enterprises Corp. gained 2.32 percent to close at NT$75.10, and Wei Chuan Foods Corp. ended up 1.04 percent at NT$14.60.

"Investors should keep a close eye on Nvidia Corp's investor conference (slated for Wednesday U.S. time), which could move tech stocks," Su said.

According to the TWSE, foreign institutional investors bought a net NT$8.35 billion of shares on the main board Monday.