Taipei, March 18 (CNA) Shares in Taiwan closed up Tuesday, with buying sparked by rallies on American markets overnight on hopes that the Federal Reserve will cut interest rates after the release of worse-than-expected retail sales data in February, dealers said.
The Taiex, the Taiwan Stock Exchange’s benchmark weighted index, ended up 153.04 points, or 0.69 percent, at 22,271.67 after moving between 22,186.42 and 22,327.10. Turnover totaled NT$273.99 billion (US$8.30 billion).
“Buying continued from Monday as investors interpreted the weaker than expected U.S. retail sales as good news, hoping it will lead to a rate cut by the Fed,” Mega International Investment Services analyst Alex Huang said.
Month-over-month retail sales growth in the United States in February was 0.2 percent, lower than the 0.6 percent increase forecast.
“Such hopes encouraged investors to pick up large cap bargains almost across the board,” Huang said.
The bellwether electronics index rose 0.75 percent after contract Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock here, ended 0.62 percent higher at NT$971.00.
Other tech heavyweights also helped push the Taiex higher. Smartphone IC designer MediaTek Inc. rose 3.51 percent to end at NT$1,475.00, and IC packaging and testing services provider ASE Technology Holding Co. closed up 1.90 percent at NT$160.50.
“Artificial intelligence related stocks also attracted interest as the market widely expects AI chip designer Nvidia Corp. to give positive leads at its ongoing annual GPU technology conference (GTC),” Huang said.
AI server maker Quanta Computer Inc. rose 1.76 percent to end at NT$259.50, and rival Inventec Corp. added 2.04 percent to close at NT$47.60.
However, iPhone assembler and AI server supplier Hon Hai Precision Industry Co., second to TSMC in terms of market value, lost 0.30 percent to end at NT$167.50.
Outside the tech sector, textile brand Far Eastern New Century Corp. rose 2.54 percent to close at NT$34.25, and Eclat Textile Co. ended up 2.11 percent to end at NT$507.00.
In addition, China Motor Corp. gained 1.01 percent to close at NT$78.90, and Yulon Motor Co. added 1.09 percent to end at NT$46.35.
The financial sector was boosted by last ditch interest, rising 0.49 percent.
Cathay Financial Holding Co. closed up 0.76 percent at NT$66.50, Mega Financial Holding Co. ended 0.63 percent higher at NT$39.85, and Fubon Financial Holding Co. gained 0.44 percent to close at NT$90.40.
“Today’s gains failed to pull the Taiex out of consolidation as the market remained affected by uncertainties created by the Trump administration’s tariff threats,” Huang said.
“My view is that whenever the index rebounds, opportunities to take profits will emerge.”
Despite the Taiex’s rise, foreign institutional investors sold a net NT$4.61 billion in shares on the market Tuesday.
