‘MORE WILLING TO BUY’:
Taiwan’s new dollar rose against the greenback yesterday, easing fears of capital flight from Taiwan, a capital markets analyst said.
The TAIEX rose yesterday following Friday’s gains on Wall Street as investor fears over aggressive interest rate hikes by the US Federal Reserve subsided.
Yesterday’s rally was led by the leading electronics sector, especially large semiconductor stocks, which followed the example of a rise in the Philadelphia Semiconductor Index on Friday.
The buying interest spread to financial and old economy stocks to push the TAIEX above 13,200 points.
The TAIEX rose 1.51 percent, or 197.02 points, to close at 13,223.73. Turnover on the main board totaled NT$204.65 billion (US$6.38 billion), with foreign institutional investors buying a net NT$9.2 billion worth of shares, data from the Taiwan Stock Exchange showed.
“Friday’s tech stock gains in US markets indicated that many investors were calmer following the volatility seen early last week due to Fed Chairman Jerome Powell’s aggressive tone following a policy-making meeting. on Wednesday,” Kerry Huang, an analyst at Concord Securities Co (康和證券).黃志祺) said.
“Judging from the buying of tech heavyweights around the world, I think market sentiment, which had been badly hit by the Fed’s rapid rate hikes, has improved to some extent,” Huang said. .
“In Taiwan, turnover increased, indicating that investors seemed more willing to buy,” Huang added.
A weakening US dollar also prompted investors to buy tech stocks, Huang said, adding that a stronger New Taiwan dollar allayed concerns about capital flight.
The NT dollar rose NT$0.103 against the US dollar yesterday to close at NT$32.082 in Taipei trading.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the largest weighted stock in the local market, rose 2.09 percent to close at NT$390 after the Chinese-language Commercial Times reported that the chipmaker had received orders from US integrated circuit designer Advanced Micro Devices Inc (AMD).
AMD ordered chips made using the advanced 5-nanometer process for its graphics processing units and central processing units, the report said, driving the broader market to a near-daily high at the end of the session.
Led by TSMC, the electronics sector rose 1.57 percent and the semiconductor sub-index gained 2.34 percent.
Countering the rally, iPhone assembler Hon Hai Precision Industry Co (鴻海精密) lost 0.5 percent to close at NT$100 after Apple Inc said production of its latest iPhone 14 Pro and iPhone 14 Pro models Max in Zhengzhou, China, was “significantly” affected by Beijing’s “zero COVID-19” policy.
He was referring to a mass exodus of workers at a factory complex in Zhengzhou run by Hon Hai, the world’s largest contract electronics maker.
Elsewhere in Asia, Hong Kong saw a new uptick even after China reaffirmed its commitment to its economically painful “zero COVID-19” policy.
Shares fell slightly at the open, then soared 2.7 percent at the close, jumping more than 5 percent from the previous session.
Shares in Shanghai and Shenzhen rose 0.2 percent and 0.4 percent respectively, with Japan’s benchmark Nikkei 225 also closing 1.2 percent higher, while Seoul closed 1.2 percent higher. 1 percent.
Sydney finished with 0.6 per cent. Jakarta added 0.8 percent and Singapore advanced 0.1 percent.
AFP additional information
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