Taipei [Taiwan], September 16 (ANI): Shares in Taiwan closed at a new high Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) set a closing record after major U.S. indexes finished at all-time highs overnight on hopes the U.S. Federal Reserve will soon kick off a rate cut cycle, Focus Taiwan reported, citing dealers.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 272.48 points, or 1.07 percent, at 25,629.64 after moving between 25,335.46 and 25,664.81 on turnover of NT$442.09 billion (USD 14.68 billion).

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"With the Taiwan dollar continuing to appreciate against the U.S. dollar on Fed rate-cut hopes, the Taiex was on an uptrend driven by ample liquidity riding fund inflows," Hua Nan Securities analyst Kevin Su said, as per the Focus Taiwan Report. "These funds simply targeted large-cap tech stocks, with TSMC in focus."

TSMC, the most heavily weighted stock on the market, rose 2.40 percent to close at a record NT$1,280.00, after hitting an intraday high of NT$1,285.00. The stock's gains contributed about 240 points to the Taiex's rise and sent the electronics index up 1.47 percent.

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"In addition to the Fed's lead, buying in TSMC and other tech heavyweights also reflected lingering optimism toward artificial intelligence development," Su said.

After playing catch-up on its relatively low valuation, smartphone chip designer MediaTek Inc. gained 3.37 percent to end at NT$1,535.00 after the company said its next flagship chip has adopted TSMC's 2nm process, which will start mass production later this year.

In addition, IC packaging and testing services provider ASE Technology Holding Co. added 1.80 percent to close at NT$169.50 while memory chip supplier Nanya Technology Corp. soared 9.67 percent to end at NT$69.20 on a product price spike.

"Inside the semiconductor industry, rotational buying remained active. Today, interest also went to silicon carbide (SiC) stocks," Su said, referring to Episil-Precision Inc., which soared 10 percent, the maximum daily increase, to close at NT$54.00.

Acme Electronics Corp. on the over-the-counter market also surged 9.64 percent to end at NT$30.15.

Also in the tech sector, Nan Ya Circuit Board Corp. jumped 10 percent to close at NT$196.50, and rival WUS Printed Circuit Co. gained 5.45 percent to end at NT$104.50.

In the nontech sector, Su said, the property industry largely attracted strong buying as the government relaxed mortgage rules, with King's Town Construction Co. rising 7.59 percent to close at NT$50.30 and Highwealth Construction Corp. gaining 2.87 percent to end at NT$46.65.

Bucking the upturn, Formosa Plastics Corp. lost 0.66 percent to close at NT$37.50, and Nan Ya Plastics Corp. shed 2.00 percent to end at NT$36.75.

In the financial sector, which edged up 0.11 percent, Cathay Financial Holding Co. added 1.07 percent to end at NT$66.10, while Fubon Financial Holding Co. ended unchanged at NT$88.80.

"Liquidity-driven buying is expected to continue to dictate the Taiex, with foreign institutional investors moving more funds into the region," Su said, citing expectations of a U.S. rate cut.

According to the TWSE, foreign institutional investors bought a net NT$27.0 billion worth of shares on the main board on Tuesday. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)