Taiwan shares edged up 0.02 percent on Tuesday to a fresh one-month closing high, as shares like contract chip makers TSMC and UMC rose in hopes of more gains in the second quarter for the tech sector.
The main TAIEX share index rose 1.76 points to 7,901.96, after hitting a one-month closing high on Monday following more than a week's break for the Lunar New Year holiday. Turnover was active at T$116.44 billion ($3.5 billion), but lower than T$125.71 billion in the previous day.
"Pressure emerged today as other neighbouring markets like China and Korea fell, but this shouldn't impact us too much," said Kevin Yeh, Grand Cathay Securities' assistant vice president.
"Tech shares are doing well and it should pick up as we head towards the second quarter," said Yeh, who expects the market to trade at between 7,900-8,000 points for the rest of the week. The electronics sub-index rose 0.57 percent, while the bank and insurance index fell 0.95 percent.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chip maker, advanced 0.58 percent, and smaller rival United Microelectronics Corp (UMC) rose 0.5 percent. Major iron and steel shares also rose after local media reported that steel maker Chung Hung Steel was raising prices by an average of 3.1 percent to 4.2 percent.
Chung Hung shares were up 2.82 percent and China Steel, the island's biggest steel producer, rose 1.67 percent, lifting the iron and steel sub-index 1.15 percent higher.
Taiwan tool maker ABBA Linear rose 0.63 percent after the Economic Daily reported that Sweden's SKF, the world's largest bearings maker, would need to spend around US $60 million to buy the Taiwan firm based on its plan to pay T$49.57 ($1.50) per share. Hon Hai Precision Industry Co rose 0.66 percent after a Czech state agency said on Monday the Czech Republic was a potential site for a new 500 million crown (US $23.19 million) investment by the Taiwan firm.
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