The TAIEX yesterday moved sharply higher, rising about 160 points to close above 16,900 points, while Asian shares were mixed as data showed ongoing weakness in China’s economy.
Taiwan’s benchmark index closed up 160.82 points, or 0.96 percent, at the day’s high of 16,922.48, the highest since April 22 last year, when the index ended at 17,025.09, Taiwan Stock Exchange data showed.
Turnover on the main board totaled NT$291.166 billion (US$9.48 billion) yesterday, with foreign institutional investors buying a net NT$12.57 billion of shares, exchange data showed.
Photo: Taipei Times file photo
Elsewhere in Asia, Hong Kong resumed its recent advance thanks to a tech rally, while Shanghai was also in positive territory, although both pared morning gains.
Manila and Mumbai also rose, while Seoul was flat.
However, Tokyo, Singapore, Sydney, Bangkok, Jakarta and Wellington all recorded declines.
The local market yesterday opened up 10.10 points, but momentum soon accelerated as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) continued its uptrend from a session earlier after a 1.23 percent increase in its American depositary receipts overnight.
Concord Capital Management Corp (康和投顧) analyst Lu Chin-wei (呂晉維) said the upbeat mood over semiconductor stocks came after TSMC told an annual general meeting on Tuesday that the company had received large orders for high-end chips used in artificial intelligence-related applications.
“With TSMC expanding its capacity, many investors have embraced high hopes that its suppliers will benefit from the trend,” Lu said.
TSMC shares rose 1.43 percent to close at the day’s high of NT$568.
Shares of the chipmaker’s equipment suppliers Scientech Corp (辛耘), Grand Process Technology Corp (弘塑) and All Ring Tech Co (萬潤) all soared 10 percent, the maximum daily increase, to close at NT$134.5, NT$577 and NT$91.8 respectively.
Analysts also speculated that TSMC would contract ASE Technology Holding Co (日月光) to provide advanced IC packaging and testing services, which boosted ASE shares by 2.88 percent to close at NT$125.8.
Due to high liquidity levels, buying also focused on old economy stocks, in particular the tourism industry and shares of green energy storage companies, lending additional support to the broader market throughout the trading session.
The TAIEX has rebounded by more than 4,300 points, or 34 percent, since a low of 12,600 in October last year.
“After today’s solid gains, the TAIEX is expected to challenge the 17,000-point mark soon as long as global financial markets stay stable,” Lu said.
Additional reporting by AFP
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