Taiwanese shares moved higher yesterday on a technical rebound, but the gains were capped by a late sell-off of large-cap semiconductor stocks, dealers said.
Turnover also remained low as investors worried the US Federal Reserve could follow a tighter monetary policy after the US on Friday reported stronger-than-expected job data for last month, they said.
The bellwether electronics sector and transportation stocks initially led the upturn before profit-taking emerged.
Photo: CNA
Buying rotated to select old-economy stocks and some financial stocks, lending support to the broader market, the dealers added.
The TAIEX closed up 53.39 points, or 0.32 percent, at 16,605.96. Turnover totaled NT$210.28 billion (US$7.15 billion), with foreign institutional investors selling a net NT$2.21 billion in shares on the main board, Taiwan Stock Exchange data showed.
“Look at today’s turnover. I think market sentiment remained cautious after the US’ May non-farm payroll data. Many investors appeared reluctant to chase prices for the time being,” Hua Nan Securities Co (華南永昌證券) analyst Lu Chin-wei said.
“Caution over a more aggressive rate hike cycle in the US continues to weigh on American stock markets, and investors here are nervous that further US volatility will send ripples through other stock markets, including Taiwan’s,” Lu said.
“As the US dollar continues to strengthen due to the Fed’s interest rate hikes, it is unlikely foreign institutional investors will resume heavy buying of shares in Taiwan any time soon,” he said.
The New Taiwan dollar declined NT$0.027 to close at NT$29.415 against the US dollar in Taipei trading yesterday.
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
RSS