Taipei: Shares in Taiwan regained momentum Tuesday, rising by nearly 3 percent after a sharp decline of 4.20 percent a session earlier, though investor caution persisted ahead of a new round of tariffs expected to be announced by the White House, dealers said. The Taiex, Taiwan Stock Exchange's benchmark weighted index, closed up 584.27 points, or 2.82 percent, at 21,280.17, with fluctuations between 20,884.53 and 21,315.52. This marked the second-largest gain this year, following a rise of 639.41 points on January 6.
According to Focus Taiwan, the turnover amounted to NT$271.58 billion (US$8.16 billion) on Tuesday, which was a decrease from NT$437.48 billion in the previous session and below the five-session average of approximately NT$300 billion. Concord Securities analyst Kerry Huang noted, "After yesterday's plunge (of 906.99 points), it was no surprise that the Taiex rebounded today." However, Huang pointed out that the drop in turnover indicated that many investors opted to remain on the sidelines, awaiting the announcement from the Trump administration.
The electronics sector led the gains, with a 3.36 percent rise on Tuesday. Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, saw a 3.74 percent increase to close at NT$944.00, contributing around 270 points to the Taiex's climb. Huang mentioned, "If turnover stays low, it will be hard for TSMC to challenge the nearest technical barrier around NT$975.00. Without TSMC steaming ahead, the Taiex could start to consolidate." The strong performance of TSMC positively influenced other semiconductor stocks, with MediaTek Inc. and United Microelectronics Corp. showing notable gains despite United Microelectronics Corp. denying a merger plan with GlobalFoundries Inc.
In contrast, Alchip Technologies Inc. experienced a decline, ending down 2.74 percent at NT$2,665.00. Second to TSMC in market value, Hon Hai Precision Industry Co. rose 4.11 percent, and Quanta Computer Inc. gained 4.23 percent. The old economy sector attracted bargain hunters, with stocks like Formosa Chemicals and Fibre Corp., Formosa Plastics Corp., China Steel Corp., and Tung Ho Steel Corp. recording gains.
The financial sector had mixed results, as Fubon Financial Holding Co. rose 2.46 percent, while Mega Financial Holding Co. saw a slight decline. Huang advised investors to monitor the U.S. economic indicators closely, including upcoming job data and a speech by Fed Chair Jereme Powell, which could influence global markets. Despite the Taiex's gains, foreign institutional investors sold a net NT$4.32 billion in shares on the market Tuesday.