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Taiwan shares breach 8,100 points in morning session

Taiwan shares breach 8,100 points in morning session

Taipei, Jan. 30 (CNA) Taiwan shares breached the 8,100 point mark in the morning session Saturday, extending gains from a strong showing a day earlier, after investors were encouraged by a soaring Wall Street overnight, dealers said.

A move by the Bank of Japan (BOJ) to adopt a negative interest policy for the first time to pump more funds into the market continued to drive equities in Taiwan to move higher amid hopes of higher liquidity, they said.

The Taiwan market as well as banks and government offices opened Saturday as part of an arrangement for there to be an extended nine-day Lunar New Year holiday, which will start on Feb. 6.

As of 10:30 a.m., the weighted index on the Taiwan Stock Exchange had added 60.75 points, or 0.75 percent, at 8,141.35 on turnover of NT$29.99 billion (US$901 million). The local main board closed up 2.22 percent on Friday. The local market opened higher in the wake of the strong gains posted by Wall Street, where the Dow Jones Industrial Average closed up 2.47 percent, the S&P 500 index ended up 2.48 percent, and the tech heavy NASDAQ index closed up 2.38 percent. The strength in the local equity market continued.

Dealers said that following the significant gains seen after heavy buying by foreign institutional investors on Friday, market sentiment seemed to have improved to some extent and the local main board has become technically healthier.

Due to the BOJ's unexpectedly negative interest rate policy, which caught the global financial markets off guard, and placed downward pressure on the Japanese yen, foreign funds moved to other regional currencies, which has boosted fund levels in the regional equity markets, they said.

In Taiwan, the financial sector continued its strength seen a day earlier, up 1.99 percent, as bargain hunters kept active to take advantage of the recent doldrums among financial stocks, dealers said.

In the financial sector, Fubon Financial Holding Co. had gained 4.25 percent to NT$38.00, and Cathay Financial Holding Co. had risen 3.60 percent to NT$37.40 as of 10:30 a.m.

"Apple concept stocks" trended higher further on the back of the gains posted by Apple Inc., which rose 3.45 percent on Wall Street overnight.

Among the Taiwanese suppliers to Apple, smartphone camera lens maker Largan Precision Co. had added 5.68 percent to NT$2,510.00, and metal casing supplier Catcher Technology Co. had risen 3.07 percent to NT$252.00 as of 11:30 a.m. (By Chang Chun-mao and Frances Huang)

Updated : 2021-04-23 22:21 GMT+08:00