Taiwan shares end up over 2% after U.S. gains but turnover reduced

Taipei, April 7 (CNA) Shares in Taiwan closed up over 2 percent Tuesday, as buying focused on tech stocks after a U.S. rally, although turnover shrunk amid lingering concerns over the Middle East, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 657.39 points, or 2.02 percent, at 33,229.82 after moving between 32,671.52 and 33,264.22.

Turnover totaled NT$564.32 billion (US$17.64 billion), down from NT$702.61 billion on April 2, the last session before the Tomb Sweeping festival holiday.

"The U.S. markets continued to dictate the Taipei market as gains posted by U.S. semiconductor stocks triggered catch-up play among their Taiwanese counterparts," Moore Securities Investment Consulting Co. Adam Lin said, citing a 1.06 percent overnight increase on the Philadelphia Semiconductor Index.

"But, trading volume was also reduced, indicating the gains were technical in nature with many investors reluctant to chase prices amid lingering concerns over the Middle East," Lin said.

The electronics index rose 2.34 percent to lead the Taiex's rebound after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, gained 2.76 percent to close at the day's high of NT$1,860.00. The stock's gains contributed about 400 points to the Taiex's rise.

Scientech Corp., TSMC's IC assembly equipment supplier, soared 10 percent, the maximum daily increase, to end at NT$507.00, and United Microelectronics Corp., a smaller contract chipmaker, surged 8.77 percent to close at NT$58.30.

Bucking the upturn, IC packaging and testing service firm ASE Technology Holding Co. lost 2.49 percent to end at NT$352.00.

Also in the tech sector, power management solution supplier Delta Electronics Inc. rose 5.94 percent to close at NT$1,515.00 but iPhone assembler and AI server maker Hon Hai Precision Industry Co. ended down 0.52 percent at NT$192.00.

"With the electronics sector in focus, gains among nontech stocks appeared uneven," Lin said.

On the back of higher international crude oil prices, Formosa Plastics Corp. rose 3.49 percent to close at NT$47.50 and Nan Ya Plastics Corp. gained 4.41 percent to end at NT$80.50.

Elsewhere in the old economy sector, however, Eclat Textile Co. lost 1.40 percent to close at NT$318.00, and rival Makalot Industrial Co. ended down 0.23 percent at NT$218.50.

China Steel Corp., Taiwan's largest steel maker, closed unchanged at NT$19.50, while Tung Ho Steel Corp. added 0.43 percent to end at NT$69.60.

The financial sector rose 0.81 percent, with CTBC Financial Holding Co. up 2.39 percent to close at NT$55.80, but Fubon Financial Holding Co. down 0.11 percent to end at NT$87.70.

"Investors should watch whether Tehran will meet the latest deadline set by U.S. President Donald Trump to reopen the Strait of Hormuz [later on Tuesday], and what the global markets will react," Lin said.

Foreign institutional investors bought a net NT$10.06 billion of shares on the main board Tuesday, according to the Taiwan Stock Exchange.