The TAIEX closed lower yesterday after fluctuating in consolidation mode ahead of the release of US job data later in the day.
Dealers reported that investors, awaiting clues from the upcoming job report, held off during the session, despite reduced fears after US Federal Reserve Chairman Jerome Powell struck a softer tone earlier this week.
The TAIEX ended down 0.28 percent at 14,970.68, with turnover totaling NT$223.1 billion (US$7.3 billion), lifting the TAIEX to end the week up 192.17 points from 14,778.51 points on Friday last week.
Investors took cues from a lackluster showing on the US markets, where the Dow Jones Industrial Average lost 0.56 percent and the tech-heavy NASDAQ Composite Index rose only 0.13 percent overnight ahead of the release of the US nonfarm payroll report for last month.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the market’s most heavily weighted stock, came under pressure along with other semiconductor heavyweights.
iPhone assembler Hon Hai Precision Industry Co (鴻海精密) — second to TSMC in terms of market capitalization posted — lent some support to the broader market.
“Market sentiment seemed to have improved in recent sessions after Powell’s speech on Wednesday,” Hua Nan Securities Co (華南永昌證券) analyst Kevin Su (蘇俊宏) said. “Still, before the job data, many investors preferred to take a pause after yesterday’s rally.”
On Wednesday, Powell said the pace of interest rate increases would likely slow in the current rate hike cycle, potentially starting this month.
However, Powell cautioned that the Fed’s monetary policy was likely to stay tight for some time until signs of progress on inflation emerged.
“Since the beginning of November, the TAIEX has gained significantly, and it was no surprise that caution set in before the job data is out amid fears over a possible technical pullback,” Su said.
Before yesterday, the local main board had moved up by 2,063.05 points, or 15.93 percent, since the beginning of last month.
“TSMC fell victim to profit-taking, but fortunately, Hon Hai and its subsidiaries scored gains to offset the losses suffered by the semiconductor industry. This was due to optimism toward the company’s efforts in developing the electric vehicle business to diversify its product portfolio,” Su said.
Outperforming the broader market, Hon Hai, also known as Foxconn (富士康), gained 2.43 percent to close at NT$105.50.
At the other end of the market, TSMC lost 1.20 percent to close at NT$492.50, as the stock faced stiff technical resistance ahead of the NT$500,00 mark.
Bucking the downward trend, power management integrated circuit designer Silergy Corp (矽力杰) soared 10 percent to close at NT$544.00, and Powerchip Semiconductor Manufacturing Corp (力積電), another smaller contract chipmaker, rose 1.76 percent to end at NT$34.60.
Foreign institutional investors sold a net NT$50.52 million worth of shares on the main board yesterday, the Taiwan Stock Exchange said.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The TAIEX ended the Year of the Dragon yesterday up about 30 percent, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The benchmark index closed up 225.40 points, or 0.97 percent, at 23,525.41 on the last trading session of the Year of the Dragon before the Lunar New Year holiday ushers in the Year of the Snake. During the Year of the Dragon, the TAIEX rose 5,429.34 points, the highest ever, while the 30 percent increase in the year was the second-highest behind only a 30.84 percent gain in the Year of the Rat from Jan. 25, 2020, to Feb.
RSS