Taiwan stocks rose after US manufacturing expanded in February for the first time in 19 months, signaling a recovery in demand for chipmakers such as United Microelectronics Corp (UMC, 聯電) from their biggest export market.
Computer-related exporters also gained after the Nasdaq Composite Index had its biggest rally since Dec. 5. Silicon Integrated Systems Corp (矽統) rose after saying sales last month increased more than a quarter.
The TAIEX rose 193.70, or 3.4 percent, to 5874.48.
Within the index, 463 stocks rose and 48 fell. The total value of trade was NT$131 billion (US$3.7 billion), more than a third higher than the six-month daily average of NT$97.2 billion.
"It does look like things in the US are on the mend," said David Loomis, chief strategist at Primasia Securities Co.
"We have seen strong monthly sales from the listed companies in Taiwan."
The TAIEX, 64 percent of which is made up of electronics stocks, and the Nasdaq, 49 percent of whose market value is computer and telecommunications stocks, have had a correlation of 0.7 over the last six months. That indicates they move in tandem with each other about 70 percent of the time.
Chipmakers rose after the Philadelphia Semiconductor Index, a price-weighted index of companies that design and make chips, soared 11 percent on Friday on optimism an economic recovery in the US will boost demand for semiconductors.
Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電), the largest made-to-order chipmaker, which sold more than two-thirds of its semiconductors to the US last year, rose NT$5.50, or 6.8 percent, to NT$86.50. Its US-traded shares rose 7.1 percent to US$17.41, their largest gain since Dec. 5.
Rival UMC rose NT$3, or 6.4 percent, to NT$50. Its US-traded shares added 8.9 percent to US$9.20. The second-largest made-to-order chipmaker, which on Friday topped the list of net purchases by foreign investors, bought back 8.4 million of its own shares for NT$391 million.
Among memory chipmakers, Nanya Technology Corp (南亞科技) rose NT$2.20, or 5 percent, to NT$46.10. Winbond Electronics Corp (華邦電腦), the second-largest memory chipmaker, gained NT$1.70, or 6.8 percent, to NT$26.70. Mosel Vitelic Inc (茂矽), the third largest, soared NT$1.20, or 6.9 percent, to NT$18.70.
UPDATED (3:40pm): A suspected gas explosion at a shopping mall in Taichung this morning has killed four people and injured 20 others, as emergency responders continue to investigate. The explosion occurred on the 12th floor of the Shin Kong Mitsukoshi in Situn District (西屯) at 11:33am. One person was declared dead at the scene, while three people were declared deceased later after receiving emergency treatment. Another 20 people sustained major or minor injuries. The Taichung Fire Bureau said it received a report of the explosion at 11:33am and sent rescuers to respond. The cause of the explosion is still under investigation, it said. The National Fire
ACCOUNTABILITY: The incident, which occured at a Shin Kong Mitsukoshi Department Store in Taichung, was allegedly caused by a gas explosion on the 12th floor Shin Kong Group (新光集團) president Richard Wu (吳昕陽) yesterday said the company would take responsibility for an apparent gas explosion that resulted in four deaths and 26 injuries at Shin Kong Mitsukoshi Zhonggang Store in Taichung yesterday. The Taichung Fire Bureau at 11:33am yesterday received a report saying that people were injured after an explosion at the department store on Section 3 of Taiwan Boulevard in Taichung’s Situn District (西屯). It sent 56 ambulances and 136 paramedics to the site, with the people injured sent to Cheng Ching Hospital’s Chung Kang Branch, Wuri Lin Shin Hospital, Taichung Veterans General Hospital or Chung
‘TAIWAN-FRIENDLY’: The last time the Web site fact sheet removed the lines on the US not supporting Taiwanese independence was during the Biden administration in 2022 The US Department of State has removed a statement on its Web site that it does not support Taiwanese independence, among changes that the Taiwanese government praised yesterday as supporting Taiwan. The Taiwan-US relations fact sheet, produced by the department’s Bureau of East Asian and Pacific Affairs, previously stated that the US opposes “any unilateral changes to the status quo from either side; we do not support Taiwan independence; and we expect cross-strait differences to be resolved by peaceful means.” In the updated version published on Thursday, the line stating that the US does not support Taiwanese independence had been removed. The updated
‘LAWFUL USE’: The last time a US warship transited the Taiwan Strait was on Oct. 20 last year, and this week’s transit is the first of US President Donald Trump’s second term Two US military vessels transited the Taiwan Strait from Sunday through early yesterday, the Ministry of National Defense said in a statement, the first such mission since US President Donald Trump took office last month. The two vessels sailed south through the Strait, the ministry said, adding that it closely monitored nearby airspace and waters at the time and observed nothing unusual. The ministry did not name the two vessels, but the US Navy identified them as the Arleigh Burke-class guided-missile destroyer USS Ralph Johnson and the Pathfinder-class survey ship USNS Bowditch. The ships carried out a north-to-south transit from