Taipei: Shares in Taiwan experienced an upward trend on Tuesday, continuing the positive momentum from the previous session, as a technical rebound persisted, according to market dealers. The Taiex, Taiwan Stock Exchange’s weighted index, increased by 198.22 points, or 0.99 percent, closing at 20,232.63. The turnover amounted to NT$238.64 billion (approximately US$7.39 billion). This rise followed the main board surpassing the 20,000-point threshold on Monday for the first time since April 2, amid concerns over reciprocal tariffs announced by the Trump administration.
According to Focus Taiwan, the market opened slightly lower on Tuesday but quickly regained its footing. Bargain hunters became active to capitalize on recent significant losses caused by tariff-related fears. Kerry Huang, an analyst at Concord Securities, noted that the day’s buying was concentrated on non-tech stocks, while the electronics sector’s gains were limited. This was influenced by reports that China’s Huawei Technologies is set to test its newest artificial intelligence chip, potentially competing with Nvidia Corp.’s offerings.
The electronics index rose by 0.99 percent, with the semiconductor sub-index increasing by 0.64 percent. Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, saw a 0.56 percent increase, closing at NT$902.00. However, TSMC’s American depositary receipts decreased by 1.03 percent, and Nvidia shares fell by 2.05 percent, following a Wall Street Journal report about Huawei’s new AI chip, Ascend 910D.
Huang commented that TSMC and the broader tech sector remained in consolidation mode. In the semiconductor sector, MediaTek Inc. rose by 1.09 percent, while AIchip Technologies Inc. fell by 0.68 percent. AI-related stocks, such as Hon Hai Precision Industry Co. and Quanta Computer Inc., were also impacted by the Huawei report.
The market saw buying shift to old economy and financial stocks, with Huang describing the gains as technical following recent losses. The electric machinery industry rose by 3.73 percent, with Fortune Electric Co. and Shihlin Electric and Engineering Corp. recording gains. The petrochemical sector also saw increases, with notable performances from Formosa Plastics Corp. and Nan Ya Plastics Corp.
Hopes of high cash dividend payouts buoyed the financial sector, which rose by 1.49 percent. Fubon Financial Holding Co. and Cathay Financial Holding Co. both saw notable increases. Despite the Taiex’s gains, turnover remained low, as caution persisted among investors anticipating further tariff-related developments from the Trump administration.
According to the TWSE, foreign institutional investors purchased a net NT$9.40 billion worth of shares on the main board on Tuesday.
