Taiwan stocks closed a touch higher on Wednesday as financial shares like Hua Nan rose on suspected support from state funds, but tech issues came under pressure from Wall Street's losses.
The main TAIEX index traded in a narrow, 52 point range, before ending up 0.15 percent at 6,810.25. The index has risen 11 percent over the past three weeks.
"State-linked funds probably supported financial shares, while display screen and memory chip makers encountered profit taking," said Tu Jin-lung, president of Grand Cathay Investment Services, which has some US $40 million under management.
The financial sub-index rose 1.74 percent, partly because the insurance sector was seen benefiting from an expected rise in US interest rates that will likely be followed by a similar lift in Taiwan, analysts said.
Hua Nan Financial Holding, the island's third-largest listed financial group, jumped 6.44 percent to T$31.40, while Cathay Financial Holding Co, which owns Taiwan's largest life insurer, rose 2.34 percent to T$65.50.
Taiwan's electronics sub-index fell 0.28 percent as investors took profits in shares of producers of computer display screens and memory chips, which had risen recently on expectations they would report strong quarterly earnings.
Shares of Compal Communications, which makes handsets for Motorola, surged the daily seven percent limit to T$95.50. Motorola shares surged 25 percent in extended-hours trading on Tuesday.
AU Optronics, the world's third-largest display maker, lost 1.96 percent to T$75.0.
Smaller rival Hannstar Display slid 3.46 percent to T$22.30, even after the firm posted strong first quarter profits on Tuesday.
Turnover fell to T$137.2 billion from Tuesday's T$149.5 billion on caution over near-term outlook as the index now faced heavy resistance at around 6,800-7,000 points, analysts said.
The over-the-counter TAISDAQ index lost 0.68 percent to 156.64, while April TAIEX index futures fell 0.22 percent to 6,824.
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