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Taiwan shares give up early gains ahead of Fed meeting outcome

Taiwan shares give up early gains ahead of Fed meeting outcome

Taipei, July 29 (CNA) Shares in Taiwan closed lower Wednesday after giving up earlier gains amid cautious sentiment before the U.S. Federal Reserve concludes a two-day policymaking meeting later in the day, dealers said.
While selling focused on the bellwether electronics sector, select heavyweights, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry Co., appeared resilient, providing some support to the broader market, they said.
The weighted index on the Taiwan Stock Exchange ended down 19.01 points, or 0.22 percent, at 8,563.48, after moving between 8,516.23 and 8,619.41, on turnover of NT$88.85 billion (US$2.82 billion).
The market opened up 5.52 points and rose to the day's high in the wake of a more than 1 percent increase on the Dow Jones Industrial Average overnight, but selling set in soon after the index breached 8,600 points, dragging down large-cap stocks, dealers said. The weakness continued into the end of the session, they said. "Before the Fed concludes its meeting, investors have the tendency to hold a cautious attitude for now," Mega International Investment Services Corp. analyst Alex Huang said. "So, many investors simply pocketed their earlier gains and stepped back from the trading floor."
Since the Fed is likely to kick off an interest rate hike cycle in the second half of this year as the U.S. economy shows signs of improving, the U.S. central bank's every move and comments on the economy have been watched closely.
"High-tech stocks have become the targets of investors' selling amid growing concerns over global demand for high-tech gadgets in the third quarter as a stronger dollar has been hurting consumption," Huang said. The electronics sub-index ended down 0.33 percent.
Among the falling electronics stocks, Largan Precision Co., a smartphone camera lens supplier to Apple Inc. fell 3.58 percent to close at NT$3,100.00, and Catcher Technology Co., which makes metal casing for Apple, shed 2.63 percent to end at NT$333.00.
Outperforming the broader market, TSMC, the most heavily weighted stock in the local market, rose 1.12 percent to close at NT$135.50 after moving above the previous close throughout the session. Hon Hai, an iPhone and iPad assembler, gained 1.67 percent to close at NT$91.50 on the back of bargain hunting in the late session.
"These stocks did prevent the index from falling further, while the market remained technically fragile," Huang said, adding that it is likely for the index to test 8,500 points in the short term.
In the non-high tech sector, Fubon Financial Holding Co. fell 2.30 percent to close at NT$55.30, while Cathay Financial Holding Co. rose 0.20 percent to end at NT$49.70. Formosa Plastics Corp. gained 0.57 percent to close at NT$70.00, while Taiwan Cement Corp. lost 1.28 percent to end at NT$34.65. (By Frances Huang)


Updated : 2021-09-27 22:03 GMT+08:00