Taiwan market edges higher as tech gains fade and investors await US inflation data
The Taiex index closed modestly up after early tech rally lost steam, with traders cautious ahead of upcoming US consumer price data.
On Wednesday the Taiwan Stock Exchange's Taiex edged up 0.16% to close at 47,183.36, after moving within a range of 47,060.78 to 47,548.26. Early gains were driven by a rally in technology shares, buoyed by a 1.30% rise in the Philadelphia Semiconductor Index overnight. However, the momentum faded as the index approached the June intraday high of 48,218 points, prompting profit-taking, especially in heavyweight semiconductor stocks.
TSMC, which makes up over 40% of market value, declined 0.20% despite a rise in its ADRs, while MediaTek and Delta Electronics also slipped. Meanwhile, component makers like Nan Ya PCB and Unimicron posted double-digit and mid-single-digit gains respectively. Trading volume dropped to NT$773.51 billion from NT$922.66 billion the day before, and foreign institutional investors recorded a net purchase of NT$20.92 billion. Analysts expect low turnover to persist until the US Federal Reserve concludes its policy meeting next week.
