Shares in Taiwan closed slightly higher despite cautious market sentiment ahead of the U.S. Federal Reserve’s meeting outcome. The Taiex, the benchmark index of the Taiwan Stock Exchange, ended up 0.12 percent at 20,546.49. Turnover reached NT$269.795 billion. Analysts anticipated the Fed to maintain interest rates, but attention was on how Fed Chair Jerome Powell discusses the economy amidst tariff uncertainties.
Investors opted to wait for the Fed’s decision, leading to subdued trading. However, Taiwan Semiconductor Manufacturing Co. (TSMC) attracted late buying, aiding the market’s recovery. TSMC’s 0.87 percent increase bolstered the electronics and semiconductor sub-indexes. Speculation arose that government funds could be behind the surge in TSMC shares amid potential U.S. tariffs on semiconductors.
While TSMC thrived, other semiconductor stocks struggled. ASE Technology Holding Co. and MediaTek Inc. faced losses. Nanya Technology Corp. also dipped. Hon Hai Precision Industry Co. and Quanta Computer Inc. faced challenges. The uncertain tariff policy’s impact on the U.S. economy loomed, affecting market sentiment.
Amidst the caution, “military concept” stocks like Air Asia Co. and Aerospace Industrial Development Corp. saw gains. However, the financial sector dipped, with Fubon Financial Holding Co. and CTBC Financial Holding Co. facing declines. Cathay Financial Holding Co. managed to rise amidst the downturn. The market’s reaction to the Fed’s comments would influence global markets.
Foreign institutional investors showed interest, buying a net NT$13.65 billion in shares. The market’s resilience in the face of uncertainties underscores investor confidence. As global economic dynamics evolve, Taiwan’s stock market remains a focal point for investors navigating shifting landscapes.
