Taiex surges over 800 points as Trump comments on talks with Iran

Taipei, March 25 (CNA) Shares in Taiwan moved sharply higher Wednesday after U.S. President Donald Trump said peace talks with Iran were underway, suggesting a de-escalation in the war with Tehran, analysts said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 826.87 points, or 2.54 percent, at 33,439.11 after moving between 32,725.27 and 33,705.75. Turnover totaled NT$624.71 billion (US$19.38 billion).

Wednesday's rally was the seventh largest point gain in the Taiex's history, helping it overcome technical resistance ahead of the five-day moving average of 33,201 points.

"Although there was conflicting information about the war in the Middle East, Brent prices fell below US$100 per barrel, indicating the market is buying Trump's comments and that sentiment is improving," Mega International Investment Services analyst Alex Huang said.

"That's why the Taiex simply followed its counterparts in the United States and Asia to stage a strong rebound, with tech stocks in focus," Huang said.

With the electronics index rising 2.81 percent, power management solution provider Delta Electronics Inc. soared 9.54 percent to close at NT$1,550.00 and AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 2.56 percent to end at NT$200.00.

IC packaging and testing services firm ASE Technology Holding Co. gained 5.86 percent to end at NT$352.00, and memory chip supplier Nanya Technology Corp. climbed 5.86 percent to end at NT$352.00, while smartphone IC designer MediaTek Inc. closed unchanged at NT$1,620.00.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, rose 1.93 percent to end at NT$1,845.00. TSMC's gains contributed about 280 points to the Taiex's rise.

Huang said buying also spread to the financial sector, which rose 1.51 percent and played catch-up with the tech sector. Fubon Financial Holding Co. gained 1.95 percent to close at NT$88.80, and Cathay Financial Holding Co. added 0.85 percent to end at NT$71.40.

In the old economy sector, Nan Ya Plastics Corp. gained 5.12 percent to close at NT$76.00, in line with tech subsidiary Nanya Technology's rebound, while affiliate Formosa Plastics Corp. rose 1.33 percent to end at NT$45.65.

Universal Cement Corp. added 1.10 percent to close at NT$13.75, and rival TCC Group Holdings Co. rose 2.00 percent to end at NT$23.00.

"Despite today's upturn, I remain cautious about the index's movement down the road as the situation in the Middle East can change overnight," Huang said. "I would suggest keeping more funds on hand for the time being."

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$36.33 billion in shares on Wednesday.