Taiwan shares extend strength to end up 1.01%

Shares in Taiwan continued their upward momentum from a session earlier to close 1.01 percent higher Tuesday amid an influx of hot money into Asia after a lackluster U.S. monthly jobs report dampened expectations for a U.S. interest-rate hike, dealers said.

The weighted index on the Taiwan Stock Exchange (TWSE) closed up 91.72 points, or 1.01 percent, at the day's high of 9,181.85, after moving to a low of 9,098.60. Turnover totaled NT$75.18 billion (US$2.39 billion).

Shares in the electronics and financial sectors helped drive the broader market higher to approach the 9,200-point benchmark, with the market's electronics sub-index gaining 1.09 percent and the financial sub-index rising 0.91 percent.

In the electronics sector, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock on the local market, gained 1.42 percent to close at NT$179.00.

Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads for Apple Inc., gained 2.05 percent to NT$79.80.

Integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. (???) rose 0.39 percent to close at NT$38.75, while Catcher Technology Co. (??) gained 1.09 percent to end at NT$231.50 and smartphone brand HTC Corp. (???) gained 0.12 percent to end at NT$83.90.

In the financial sector, Cathay Financial Holding Co. (???) rose 1.13 percent to end at NT$40.45, and Fubon Financial Holding Co. (???) surged 2.22 percent to close at NT$46.00.

CTBC Financial Holding Co. (???) gained 0.54 percent to close at NT$18.75, while Mega Financial Holding Co. (???), which is embroiled in a money laundering investigation, gained 0.45 percent to end at NT$22.15.

Fubon Asset Management Co., Ltd. (????) said that the rebound in the market Tuesday was mainly due to an easing of fears over an immediate rate hike by the U.S. Federal Reserve after the closely watched jobs report came in weaker than Wall Street's consensus estimates, making an interest-rate hike a less likely scenario for the Fed at its next meeting in September.

However, it said investors should remain cautious about the potential for a stock market correction because turnover was low.

According to the TWSE, foreign institutional investors bought a net NT$8.37 billion-worth of shares on the main board Tuesday.

Source: Focus Taiwan News Channel