Shares in Taiwan rebounded sharply yesterday, recovering from a slump to close above the key 22,000-point mark.
The rally was driven by buying sparked by US President Donald Trump’s announcement that Israel and Iran had reached a ceasefire, dealers said.
After falling 1.42 percent on Monday, the TAIEX rose by 456.74 points, or 2.10 percent, to close at 22,188.76, with turnover expanding to NT$393.920 billion (US$13.34 billion) from NT$307.601 billion the previous day, Taiwan Stock Exchange data showed.
Photo: CNA
Foreign institutional investors bought a net NT$29.18 billion of shares on the main board after selling a net NT$15.21 billion on Monday, the data showed.
“Many investors seemed to place more faith in Trump’s announcement, with bargain hunters actively snapping up discounted stocks,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang (黃國偉) said.
“The electronics sector once again acted as a key driver, helping to restore the TAIEX to a healthier technical level above 22,000 points,” Huang added.
Taiwan Semiconductor Manufacturing Co (台積電), the market’s most heavily weighted stock, rose 2.94 percent to NT$1,050, contributing about 240 points to the TAIEX’s rise.
Hon Hai Precision Industry Co (鴻海精密), a key iPhone assembler and artificial intelligence (AI) developer, added 2.88 percent to NT$160.5.
Elsewhere in Asia, Tokyo’s Nikkei 225 rose 1.1 percent to 38,790.56 and the Hang Seng in Hong Kong gained 2.1 percent to 24,177.07. The Shanghai Composite index climbed 1.2 percent to 3,420.57.
In South Korea, the KOSPI jumped 3 percent to 3,103.64, while Australia’s S&P/ASX 200 gained 1 percent to 8,555.5.
In early European trading, Germany’s DAX leaped 2.2 percent to 23,780.32, while the CAC 40 in Paris added 1.4 percent to 7,645.58. Britain’s FTSE 100 was up 0.4 percent at 8,793.18.
International crude oil prices fell further after tumbling on Monday as fears subsided of an Iranian blockade of the Strait of Hormuz, a vital waterway for shipping crude.
The price of oil initially jumped 6 percent after trading began on Sunday night, a signal of rising worries as investors got their first chance to react to the US bombings.
However, it quickly shed all those gains, with US benchmark crude falling 7.2 percent. It dropped further early yesterday, down 3 percent to US$66.44 per barrel.
Brent crude, the international standard, shed 3.1 percent early yesterday to US$68.33.
“The Middle East may still be smoldering, but as far as markets are concerned, the fire alarm has been shut off,” SPI Asset Management managing partner Stephen Innes said in a commentary.
Additional reporting by AP
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