Taiwan’s stock market hit a fresh high on Tuesday, fueled by excitement over potential U.S. Federal Reserve rate cuts and booming tech optimism. The Taiex index, Taiwan’s main stock benchmark, climbed 272.48 points or 1.07% to close at 25,629.64. Trading volume reached NT$442.09 billion (about USD 14.68 billion), with shares swinging between 25,335.46 and 25,664.81.
Chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) led the charge, smashing a closing record at NT$1,280.00 after a 2.40% jump. It even touched an intraday peak of NT$1,285.00. TSMC’s surge added around 240 points to the Taiex and boosted the electronics index by 1.47%. Dealers say the rally ties into overnight highs in major U.S. indexes, as investors bet on the Fed starting a rate cut cycle soon.
Hua Nan Securities analyst Kevin Su points out that the strengthening Taiwan dollar against the U.S. dollar, thanks to those rate-cut hopes, is driving liquidity and fund inflows. These funds zeroed in on big tech names like TSMC. Plus, ongoing buzz around artificial intelligence (AI) development keeps the momentum going in semiconductor stocks.
MediaTek Inc., a key player in smartphone chips, jumped 3.37% to NT$1,535.00. The company revealed its next flagship chip will use TSMC’s advanced 2nm process, set for mass production later this year—helping it catch up after trading at a lower valuation.
Other semiconductor winners included ASE Technology Holding Co., up 1.80% to NT$169.50, and Nanya Technology Corp., which soared 9.67% to NT$69.20 on rising product prices. Rotational buying stayed hot, with silicon carbide (SiC) stocks stealing the spotlight. Episil-Precision Inc. hit the daily 10% limit, closing at NT$54.00, while over-the-counter Acme Electronics Corp. rose 9.64% to NT$30.15.
Tech action spilled over to circuit boards too: Nan Ya Circuit Board Corp. gained 10% to NT$196.50, and WUS Printed Circuit Co. added 5.45% to NT$104.50.
Outside tech, the property sector shone as the government eased mortgage rules. King Town Construction Co. climbed 7.59% to NT$50.30, and Highwealth Construction Corp. rose 2.87% to NT$46.65.
Not everything went up, though. Formosa Plastics Corp. dipped 0.66% to NT$37.50, and Nan Ya Plastics Corp. fell 2.00% to NT$36.75. In finance, the sector edged up 0.11%, with Cathay Financial Holding Co. gaining 1.07% to NT$66.10, while Fubon Financial Holding Co. stayed flat at NT$88.80.
Su expects liquidity-fueled buying to keep pushing the Taiex higher, especially with foreign investors pouring in more money amid U.S. rate cut expectations. In fact, foreign institutions net bought NT$27.0 billion in shares on Taiwan’s main board Tuesday, according to the Taiwan Stock Exchange (TWSE). This Taiwan stock market rally highlights how global Fed moves and AI hype are supercharging the island’s tech-heavy economy.
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