Taiwan shares end up over 1,000 points led by AI-related stocks

Taipei, June 12 (CNA) Shares in Taiwan closed more than 1,000 points higher Friday with AI-related stocks in focus amid improved sentiment after U.S. President Donald Trump cancelled planned strikes against Iran, saying a ceasefire agreement is expected as soon as this weekend, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, closed up 1,019.58 points, or 2.36 percent, at 44,169.04 after trading between 43,587.63 and 44,798.88. Turnover totaled NT$1.12 trillion (US$35.37 billion).

"Trump's comments showed the president really wants to end the war against Iran, which is expected to ease inflation pressure, and stocks in the United States bounced back strongly overnight," Cathay Futures Consultant analyst Tsai Ming-han said, citing a 1.86 percent increase on the Dow Jones Industrial Average and a 2.54 percent rise on the tech-heavy Nasdaq index.

"In Taipei, electronics heavyweights, notably in the semiconductor industry simply followed suit and the momentum largely reflected optimism toward AI development," Tsai said.

After its American depositary receipts rose 3.26 percent overnight, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value and provides most advanced AI chips, rose 2.67 percent to close at NT$2,310.00. The stock gains contributed about 480 points to the Taiex's rise, lifting the electronics index by 2.61 percent.

Memory chip supplier Nanya Technology Corp. soared 10 percent, the maximum daily increase, to end at NT$374.00 on a supply shortage, IC packaging and testing services firm ASE Technology Holding Co. gained 8.46 percent to close at NT$590.00. Smartphone IC designer MediaTek Inc. ended up 2.33 percent at NT$4,180.00.

Also in the tech sector, power management solution provider Delta Electronics Inc. rose 2.55 percent to close at NT$2,215.00, while iPhone assembler and AI server maker Hon Hai Precision Industry Co. added only 0.77 percent to end at NT$260.50.

Select raw material stocks also moved higher in line with the Taiex, Tsai said.

With the petrochemical index up 4.15 percent, Nan Ya Plastics Corp., the parent of high-flying Nanya Technology, jumped 10 percent to close at NT$106.50, and affiliate Formosa Plastics Corp. rose 3.31 percent to end at NT$45.25.

Shares in China Steel Corp., Taiwan's biggest steel maker, rose 1.89 percent to close at NT$18.90, and Tung Hon Steel Corp. gained 2.09 percent to end at NT$68.50.

In the mixed financial sector, E. Sun Financial Holding Co. added 1.48 percent to close at NT$34.35, while Cathay Financial Holding Co. ended unchanged at NT$100.50, and Fubon Financial Holding Co. lost 2.79 percent to close at NT$122.00.

"Judging from today's movement, I think the Taiex has faced stiff technical pressure ahead of 45,000 points and some consolidation is needed," Tsai added.

"Moreover, the U.S. Federal Reserve will hold a policymaking meeting next week and it is worth watching," Tsai said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$28.69 billion of shares on the main board Friday.