TAIPEI (Taiwan News) — Taiwan's stock market ended Tuesday nearly flat despite early gains, as losses in technology and traditional industry stocks offset positive sentiment from Wall Street.

The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, edged up 2.4 points to close at 20,235.03. Turnover totaled NT$273 billion (US$8.5 billion), according to CNA and CTEE.

TSMC rose 0.67% to NT$908 (US$28). Mediatek lost 1.46% to NT$1,350 while Foxconn dropped 1.05% to NT$141.5.

Broader tech sentiment was dragged down by a significant drop in US-based Supermicro’s shares. The company cut its earnings forecast, triggering a decline of more than 15% in after-hours trading and weighing on Taiwan's AI-related stocks.

Financial stocks helped offset the downturn. Cathay Financial Holdings climbed more than 5% to NT$58.5 after its board approved a NT$3.5 per-share cash dividend for 2024, representing a yield of over 6%, lifting other financial institutions.

Pandemic-related stocks saw renewed interest as Taiwan reported a third consecutive weekly rise in COVID-19 infections, signaling a possible seventh wave of the Omicron variant. Evergrande Precision, Mao Bao, Radiant Innovation, and Health & Life all hit their daily limit-up.

Robot-related stocks also posted strong gains following comments from Tesla CEO Elon Musk, who said the company aims to increase humanoid robot production tenfold next year and predicted that robots would outperform top surgeons within five years. In response, Chieftek Precision, Kye Systems, Aurotek, and Taiwan Benefit all hit their daily limit-ups.

By contrast, traditional industries underperformed. The plastics sector lost more than 1%, while glass and paper stocks each fell over 2%.

Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) said the market's recent rebound has lagged behind other global markets, with semiconductor tariffs emerging as a key concern. The US is expected to announce new chip-related tariff measures as early as May 7, drawing investor attention to potential impacts on TSMC and the broader semiconductor supply chain.

Huang advised investors to consider sectors likely to benefit from a stronger New Taiwan dollar, including domestic consumption, food, and cement. He also pointed to high-dividend and growth segments such as financials, sports, and leisure as worth watching.

Despite lingering uncertainty over the trade timeline, Huang said that barring any major surprises, the TAIEX may still have room to move higher once concerns surrounding tariffs begin to ease.

This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.