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Taiwan shares boosted by Wall Street gains

Taiwan shares boosted by Wall Street gains

Taipei, Jan. 30 (CNA) Shares in Taiwan got a boost from gains on Wall Street overnight and the Bank of Japan's new negative interest rate policy to close above the 8,100-point mark, dealers said.

The financial sector continued to trend higher and was one of the main drivers of the market's upturn, and Apple's strong showing on the Nasdaq sparked buying in select Taiwanese suppliers in Apple's supply chain, they said. Saturday's turnover fell from a day earlier, with many foreign institutional investors absent from the trading floor on a weekend day, dealers said. Taiwan was the only market in the world to open on Saturday to make up for the loss of a workday during the upcoming Lunar New Year holiday, which starts on Feb. 6.

The weighted index on the Taiwan Stock Exchange closed up 64.61 points, or 0.80 percent, at 8,145.21, after moving between 8,106.63 and 8,149.50, on turnover of NT$61.74 billion (US$1.84 billion).

The market opened up 0.33 percent to breach 8,100 points as investors were encouraged by a strong showing in U.S. markets on Friday.

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 gained 2.38 percent, dealers said.

The upward momentum was sustained through to the end of the session, supported largely by gains among financial stocks, they said. The financial sub-index closed up 2.59 percent.

"The financial sector has been hard hit by fears that it will report heavy losses from overseas investments at a time of global financial volatility," said Hua Nan Securities analyst Kevin Su. "The sector continued to attract bargain hunters today."

"After the BOJ's surprise move to adopt negative interest rates, it seems that global markets have stabilized to some extent due to higher liquidity levels. Concerns that local financial firms might post big losses were also eased," Su said.

In the financial sector, Fubon Financial Holding Co. rose 4.80 percent to close at NT$38.20, Cathay Financial Holding Co. gained 4.16 percent to end at NT$37.60, and CTBC Financial Holding Co. closed up 3.54 percent at NT$16.10.

On the back of Apple's 3.25 percent gains overnight, smartphone camera lens supplier Largan Precision Co. rose 5.26 percent to end at NT$2,500.00, and metal casing maker Catcher Technology Co. added 5.93 percent to close at NT$259.00.

Bucking the upturn on the broader market, Taiwan Semiconductor Manufacturing Co. (TSMC, ???) fell 0.70 percent to close at NT$142.00 as investors locked in the gains they built in the stock a day earlier.

In the old-economy sector, Formosa Plastics Corp. fell 0.65 percent to close at NT$76.50, while textile maker Far Eastern New Century Corp. rose 2.32 percent to end at NT$24.25.

"I think that the local stock market will continue to be driven by liquidity," Su said. "The nearest technical resistance will lie ahead of the 8,200-8,300 point range in the short term." (By Frances Huang)

Updated : 2021-05-12 07:46 GMT+08:00