Stocks fell, snapping a three-day rally. AU Optronics Corp (友達光電) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) declined on concern their gains this year may have outpaced earnings growth.
The TAIEX shed 42.77, or 0.8 percent, to 5673.18. The futures contract for September delivery fell 1.4 percent to 5675. About three stocks declined for every two that gained.
AU Optronics fell as some investors worried the stock's 123 percent gain this year has outpaced its profit growth. Shares of TSMC have gained 69 percent this year, compared with the 27 percent gain in the key index.
"Stocks that have rallied too far ahead of the recovery will have to be pulled back and wait for the recovery to catch up," said Barro Liao, who helps manages the equivalent of US$4.2 billion in Taiwan equities at Prudential Securities Investment Trust Co (
TSMC fell NT$0.50, or 0.8 percent, to NT$66.50. AU Optronics fell NT$1.50, or 3.3 percent, to NT$43.40.
China Airlines Co (華航), the country's largest airline, gained NT$0.05, or 0.4 percent, to NT$13.95 on optimism after an increase in travel in the Asia-Pacific region. Abacus International Pte, Asia's largest travel and airline ticket reservation company, said bookings in the region rose by almost 15 percent in July from a year ago after SARS was contained. Rival EVA Airways Corp (長榮航空) rose NT$0.30, or 2.3 percent, to NT$13.20.
China Development Financial Holding Corp (中華開發金控) fell NT$0.25, or 1.9 percent, to NT$12.75 after foreign investors sold 13 million more shares than they bought of the company on Tuesday.
PERSISTENT RUMORS: Nvidia’s CEO said the firm is not in talks to sell AI chips to China, but he would welcome a change in US policy barring the activity Nvidia Corp CEO Jensen Huang (黃仁勳) said his company is not in discussions to sell its Blackwell artificial intelligence (AI) chips to Chinese firms, waving off speculation it is trying to engineer a return to the world’s largest semiconductor market. Huang, who arrived in Taiwan yesterday ahead of meetings with longtime partner Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), took the opportunity to clarify recent comments about the US-China AI race. The Nvidia head caused a stir in an interview this week with the Financial Times, in which he was quoted as saying “China will win” the AI race. Huang yesterday said
Nissan Motor Co has agreed to sell its global headquarters in Yokohama for ￥97 billion (US$630 million) to a group sponsored by Taiwanese autoparts maker Minth Group (敏實集團), as the struggling automaker seeks to shore up its financial position. The acquisition is led by a special purchase company managed by KJR Management Ltd, a Japanese real-estate unit of private equity giant KKR & Co, people familiar with the matter said. KJR said it would act as asset manager together with Mizuho Real Estate Management Co. Nissan is undergoing a broad cost-cutting campaign by eliminating jobs and shuttering plants as it grapples
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
MORE WEIGHT: The national weighting was raised in one index while holding steady in two others, while several companies rose or fell in prominence MSCI Inc, a global index provider, has raised Taiwan’s weighting in one of its major indices and left the country’s weighting unchanged in two other indices after a regular index review. In a statement released on Thursday, MSCI said it has upgraded Taiwan’s weighting in the MSCI All-Country World Index by 0.02 percentage points to 2.25 percent, while maintaining the weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, at 20.46 percent. Additionally, the index provider has left Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index unchanged at 23.15 percent. The latest index adjustments are to
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