Stocks rallied yesterday, led by exporters such as Taiwan Semicon-ductor Manufacturing Co (TSMC, 台積電) and rival United Microelec-tronics Corp (UMC, 聯電), after a US survey showed that business is picking up for manufacturers in New York.
The US report "helps bolster optimism and capital inflows," said Belinda Yu, who helps manage the equivalent of US$2.2 billion for Jih Sun Securities Investment Trust Co (
The TAIEX climbed 80.83 points, or 1.7 percent, to 4,973.19, extending gains this quarter to 15 percent. About six stocks rose for every five that fell. June futures on the index added 2.7 percent to 5,037.
Shares worth NT$124 billion (US$3.6 billion) changed hands, the highest since Jan. 25. About 6 billion shares traded, about double the three-month daily average.
Foreign investors bought more shares than they sold yesterday for a fourth straight session, adding NT$1.3 billion net worth of stock, according to Bloomberg data. Overseas investors have been net buyers of stocks for 10 weeks.
TSMC climbed NT$2, or 3.6 percent, to NT$58. UMC gained NT$0.80, or 3.5 percent, to NT$23.80.
TSMC, Fubon Financial Holding Co (富邦金控) and Nan Ya Plastics Corp (南亞塑膠), three of the 14 Taiwanese stocks added to a new Standard & Poor's Asian index, may benefit from increased buying by money managers tracking the index, some investors said.
S&P said in a statement on June 10 that the new S&P Asia 50 index will take effect beginning June 23.
Fubon climbed NT$0.70, or 2.5 percent, to NT$28.40. Nan Ya Plastics rose NT$1, or 2.6 percent, to NT$39.
CMC Magnetics Corp (中環) gained NT$0.90, or 3.8 percent, to NT$24.60. The compact disc maker expects to raise disc prices in the fourth quarter as demand exceeds supply, a Chinese-language newspaper reported, citing CMC chairman Bob Wong (
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said
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