Taiwan Shares Rise Amid Optimism Over U.S.-China Trade Talks Progress

Taipei: Shares in Taiwan closed higher Monday, buoyed by improved market sentiment following the United States' announcement of "substantial progress" in trade talks with China, dealers reported. The positive sentiment was further bolstered by investor anticipation of favorable developments at the upcoming 2025 Computex Taipei, scheduled for May 20-23. According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), climbed 214.50 points, or 1.03 percent, closing at 21,129.54. The index fluctuated between a low of 20,966.95 and a high of 21,176.13, with a total turnover amounting to NT$279.06 billion (US$9.22 billion). Hua Nan Securities analyst Kevin Su noted the optimistic outlook among investors, who are hopeful for a favorable conclusion to the two-day U.S.-China negotiations held in Geneva over the weekend. A joint statement on the talks is anticipated to be released Monday (U.S. time). The electronics sector drew significant buying interest, rising 1.17 percent and playin g a pivotal role in driving the Taiex's performance, Su added. With Computex on the horizon, investors are particularly keen on possible positive insights from Nvidia Corp. CEO Jensen Huang's scheduled speech at the event. AI-related stocks saw notable gains, with Hon Hai Precision Industry Co., an iPhone assembler and AI server maker, climbing 4.08 percent to close at NT$153.00. Wistron Corp., another AI server supplier, saw its shares increase 1.40 percent to NT$108.50. Additionally, Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in the local market and a chip supplier for Nvidia, rose 0.84 percent to NT$957.00, contributing approximately 60 points to the Taiex's rise. TSMC's shares surpassed their 60-day moving average of NT$956, indicating a healthier technical outlook, Su explained. In the semiconductor sector, AIchip Technologies Inc., an application-specific integrated circuit (ASIC) designer, soared 10 percent, the maximum daily increase, reaching NT$2,530.00. IC packaging and testing services provider ASE Technology Holding Co. also performed well, closing up 3.27 percent at NT$142.00. Conversely, MediaTek Inc., a smartphone IC designer, experienced a slight decline, losing 0.75 percent to end at NT$1,315.00. The enthusiasm for AI-driven robotics developments also positively impacted machinery stocks, with Hiwin Technologies Corp. and TBI Motion Technology Co. rising 7.45 percent and 7.43 percent, respectively, to NT$223.50 and NT$42.65. Old economy stocks saw buying interest as well, with Eclat Textile Co. up 6.84 percent to NT$453.00, and Makalot Industrial Co. up 2.73 percent to NT$282.50. Formosa Plastics Corp. increased 0.96 percent to NT$36.70, while Nan Ya Plastics Corp. added 0.64 percent to NT$31.65. In the financial sector, Cathay Financial Holding Co. rose 1.63 percent to close at NT$56.10, and Fubon Financial Holding Co. ended up 0.90 percent at NT$78.10. However, Su cautioned that concerns over rising inflation, exacerbated by U.S. tariff policies, could potentially cap ga ins in global equities by pushing up treasury yields. According to the TWSE, foreign institutional investors purchased a net NT$16.97 billion worth of shares on the main board Monday.