Taiwan's TWSE index rose for a second day, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after the Nasdaq Composite Index gained 2.1 percent and the chipmaker's US shares advanced.
Memory chipmaker such as Winbond Electronics Corp (華邦電子) fell after the price of their main product dropped for a third day.
The TWSE Index added 21.67, or 0.4 percent, to 5522.80. For the week, it fell 2.9 percent. Within the index today, 273 stocks rose and 203 fell. The total value of trade today was NT$133.6 billion (US$3.8 billion), up from NT$100.8 billion yesterday.
"I've been buying," said Pedro Tai, a portfolio manager of the Formosa Fund at ABN-Amro Asset Management Taiwan Ltd, which manages NT$120 million in Taiwan stocks. "The fund has a mandate to be fully invested. If the fund's investors aren't bullish on Taiwan, they can sell." He's been selling Chunghwa Telecom Co (中華電信) and buying Far EasTone Telecommunications Ltd (遠傳電信) and Taiwan Cellular Corp (台灣大哥大).
The TWSE Index and the Nasdaq have had a correlation of 0.7 over the last 12 months, which indicates they move in tandem about 70 percent of the time.
Computer stocks make up 46 percent of the market value of Nasdaq, while electronic stocks make up 64 percent of the TAIEX's.
Made-to-order chipmakers advanced after the widely watched Philadelphia Semiconductor Index, a price-weighted index of 16 companies that design and make chips, rose 1.5 percent yesterday.
TSMC, the made-to-order chipmaker, rose 50 cents, or 0.6 percent, to NT$85. Its US shares rose 4.2 percent to US$18.09 yesterday.
United Microelectronics Corp (UMC, 聯電), the second-biggest made-to-order chipmaker, added 60 cents, or 1.3 percent, to NT$45.30. Its US shares rose 6.4 percent to US$8.81 yesterday.
Memory chipmakers dropped after the price of the 128-megabit dynamic random access memory chip declined 3.8 percent to US$3.30 on Thursday from US$3.43 Wednesday, according to DRAM Exchange, a market place for memory chips.
Mosel Vitelic Inc (茂矽電子) slumped NT$1, or 6 percent, to NT$15.70. Powerchip Semiconductor Corp (力晶半導體) dropped 30 cents, or 1.2 percent, to NT$25.30. Winbond declined 30 cents, or 1.3 percent, to NT$23.50.
Mobile telephone operators were mixed as the government accepts for a third day bids for five so-called third generation mobile telephone licenses worth at least NT$33.6 billion (US$960 million). The companies were asked to initially submit bids at least 1 percent above the reserve price of five licenses worth between NT$4.2 billion and NT$7.6 billion.
Chunghwa Telecom, Taiwan's biggest phone company that's controlled by the government, rose 30 cents, or 0.6 percent, to NT$49.50 as the company is able to better shoulder the costs of a new license because of government backing than its two smaller, and privately owned, rivals.
Far EasTone, the nation's No. 4 mobile telephone operator, shed 50 cents, or 1.1 percent, to NT$45.30. Taiwan Cellular, the No. 1 mobile phone company, shed 20 cents, or 0.4 percent, to NT$45.80.
US President Donald Trump yesterday announced sweeping "reciprocal tariffs" on US trading partners, including a 32 percent tax on goods from Taiwan that is set to take effect on Wednesday. At a Rose Garden event, Trump declared a 10 percent baseline tax on imports from all countries, with the White House saying it would take effect on Saturday. Countries with larger trade surpluses with the US would face higher duties beginning on Wednesday, including Taiwan (32 percent), China (34 percent), Japan (24 percent), South Korea (25 percent), Vietnam (46 percent) and Thailand (36 percent). Canada and Mexico, the two largest US trading
China's military today said it began joint army, navy and rocket force exercises around Taiwan to "serve as a stern warning and powerful deterrent against Taiwanese independence," calling President William Lai (賴清德) a "parasite." The exercises come after Lai called Beijing a "foreign hostile force" last month. More than 10 Chinese military ships approached close to Taiwan's 24 nautical mile (44.4km) contiguous zone this morning and Taiwan sent its own warships to respond, two senior Taiwanese officials said. Taiwan has not yet detected any live fire by the Chinese military so far, one of the officials said. The drills took place after US Secretary
ACTION PLAN: Taiwan would expand procurement from the US and encourage more companies to invest in the US to deepen bilateral cooperation, Lai said The government would not impose reciprocal tariffs in retaliation against US levies, President William Lai (賴清德) said yesterday, as he announced five strategies to address the issue, including pledging to increase Taiwanese companies’ investments in the US. Lai has in the past few days met with administrative and national security officials, as well as representatives from various industries, to explore countermeasures after US President Donald Trump on Wednesday last week announced a 32 percent duty on Taiwanese imports. In a video released yesterday evening, Lai said that Taiwan would not retaliate against the US with higher tariffs and Taiwanese companies’ commitments to
CHIP EXCEPTION: An official said that an exception for Taiwanese semiconductors would have a limited effect, as most are packaged in third nations before being sold The Executive Yuan yesterday decried US President Donald Trump’s 32 percent tariff on Taiwanese goods announced hours earlier as “unfair,” saying it would lodge a representation with Washington. The Cabinet in a statement described the pledged US tariffs, expected to take effect on Wednesday next week, as “deeply unreasonable” and “highly regrettable.” Cabinet spokeswoman Michelle Lee (李慧芝) said that the government would “lodge a solemn representation” with the US Trade Representative and continue negotiating with Washington to “ensure the interests of our nation and industries.” Trump at a news conference in Washington on Wednesday announced a 10 percent baseline tariff on most goods