By: Frances Huang
Taipei, March 25 (CNA) Shares in Taiwan moved sharply higher Wednesday as investors were encouraged by a strong showing on U.S. markets overnight amid rising hopes that the U.S. Congress will soon pass a US$2 trillion stimulus package to combat the COVID-19 coronavirus pandemic, dealers said.
Large-cap stocks across the board rode the wave of optimism toward the U.S. stimulus plan as investors took cues from a more-than 11 percent increase on the Dow Jones Industrial Average a day earlier, pushing up the main board by almost 4 percent, the dealers said.
The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, closed up 359.13 points, or 3.87 percent, at 9,644.75, after moving between 9,426.43 and 9,722.37, on turnover of NT$182.99 billion (US$6.05 billion).
The market opened up 1.52 percent in reaction to the Dow's upturn, the biggest one-day percentage gain since 1933, and momentum on the local main board accelerated, with buying focusing on market heavyweights such as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which vaulted the Taiex past the 9,700-point mark before some profit-taking emerged to cap the gains, the dealers said.
"Since an intraday low of 8,523 points Wednesday, the Taiex bounced back significantly, so it came as no surprise that the Taiex came off its high today as some investors just wanted to keep cash on hand for the moment," Ta Chan Securities analyst Jerry Chen said. [FULL STORY]