FX.co ★ TAIEX Hits Near 4-Week High, Ends 0.9% Higher

The TAIEX, Taiwan’s benchmark stock index, rose 397 points, or 0.9%, to close at 45,518 on Wednesday, extending its advance for a third straight session. Gains were driven primarily by electronic technology, technology services, and producer manufacturing shares. The index remained near its highest level since July 16 as investors continued to ride strong momentum in the technology sector.

Electronic technology stocks climbed 1.1%, led by Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization — which added 0.8%, following a 0.6% rise in the previous session. Hon Hai Precision Industry jumped 2.5%, while Unimicron edged up 0.8%. Accton Technology Corp. and Quanta Computer advanced 3.8% and 3.2%, respectively.

Upside potential was capped, however, by weakness on Wall Street overnight. Rising oil prices fueled uncertainty over the Federal Reserve’s policy stance ahead of its upcoming meeting, while investors also remained cautious in the run-up to the release of US inflation data later in the day.