Taipei: Global index provider MSCI Inc. has increased Taiwan's weighting in its three key indexes, delivering a modest boost to Taiwan's stock market on Thursday. According to Focus Taiwan, MSCI announced an upgrade in Taiwan's weighting in the MSCI Emerging Markets Index from 26.6 percent to 26.85 percent, a move particularly significant for foreign institutional investors.

The index provider also adjusted Taiwan's positioning in the MSCI All-Country World Index from 3.08 percent to 3.13 percent and in the MSCI All-Country Asia ex-Japan Index from 29.75 percent to 30.03 percent. This marks the second consecutive quarter that MSCI has increased Taiwan's weighting across these indexes, a trend attributed to the robust performance of Taiwan's stock market, especially technology stocks benefiting from the global AI boom.

In the MSCI Emerging Markets Index, Taiwan experienced a significant weighting hike of 0.25 percentage points, the largest among the countries in the index, while India faced a reduction of 0.14 percentage points. These changes contributed to the Taiwan Stock Exchange's (TWSE's) benchmark index, the Taiex, closing up 1.11 percent at 46,021.48.

The TWSE highlighted Taiwan's prominence in the global capital market, underscored by its comprehensive manufacturing clusters in semiconductors, AI servers, and electronic components. Taiwan's stock market remains a pivotal avenue for international investors keen on tapping into the country's expanding AI sector.

According to the TWSE, Taiwan Semiconductor Manufacturing Co. (TSMC) has emerged as the largest stock in the MSCI Emerging Markets Index, holding a weighting of 15.46 percent. Other Taiwanese companies like MediaTek Inc., Delta Electronics Inc., and Hon Hai Precision Industry Co. also ranked among the top 10 stocks in the same index.

MSCI also adjusted its constituent companies within various indexes. In the MSCI Global Standard Indexes, memory chip suppliers Nanya Technology Corp., Winbond Electronics Corp., and Phison Electronics Corp., along with several others, were added. However, these six stocks will be removed from the MSCI Global Small Cap Indexes.

Conversely, six stocks including TCC Group Holdings Co. and Yang Ming Marine Transport Corp. are set to transition from the MSCI Global Standard Indexes to the MSCI Global Small Cap Indexes. Following these changes, Nanya Technology achieved the largest weighting increase in the MSCI Taiwan Index, while TSMC experienced a decrease.

These adjustments are scheduled to take effect after market closure on August 31, as per MSCI's announcement.