Taipei: Shares in Taiwan surged dramatically, with the Taiex index posting its second-highest daily point gain ever, buoyed by hopes of de-escalation in Middle Eastern military conflicts. The Taiex, Taiwan's benchmark index, increased by 1,451.83 points or 4.58 percent, closing at 33,174.82. The day's trading saw the index fluctuating between 31,892.33 and 33,182.22, with a total turnover of NT$616.12 billion (US$19.13 billion).According to Focus Taiwan, the significant gains were largely influenced by statements from U.S. President Donald Trump and Iranian officials suggesting an end to the ongoing war could be near. This optimism encouraged investors to purchase shares that had previously suffered due to the conflict, particularly in the electronics sector, following a rebound among U.S. tech giants.Tom Tang, an analyst with MasterLink Securities, noted, "Investors simply seized on the positive news to pick up shares that had been hammered in recent sessions by the war." This was particularly evident in the performance of Taiwan Semiconductor Manufacturing Co. (TSMC), whose American depositary receipts (ADRs) rose 6.78 percent overnight. TSMC's stock increased by 5.40 percent, closing at NT$1,855.00, contributing approximately 760 points to the Taiex's rise.Tang further commented on TSMC's appeal, stating, "TSMC was attractive after recent heavy losses amid geopolitical unease. Its sound fundamentals during the AI boom could lead the stock to challenge the nearest technical resistance around NT$1,950 soon."Other semiconductor stocks also saw significant gains. ASE Technology Holding Co. surged by the maximum daily increase of 10 percent to NT$361.00, and Nanya Technology Corp. rose 6.30 percent to NT$211.00. However, MediaTek Inc. experienced a decline, ending down 1.68 percent at NT$1,465.00.The tech sector overall experienced a boost, with Hon Hai Precision Industry Co. rising 5.07 percent to NT$197.00, and Delta Electronics Inc. advancing 6.88 percent to NT$1,475.00. Meanwhile, the old economy secto r saw the petrochemical index increase by 3.46 percent, with Nan Ya Plastics Corp. and Formosa Plastics Corp. gaining 6.50 percent and 1.63 percent, respectively.In the construction materials industry, Asia Cement Corp. and TCC Group Holdings Co. rose by 1.73 percent and 3.04 percent, respectively. The financial sector, which increased by 2.52 percent, saw Cathay Financial Holding Co. and Fubon Financial Holding Co. grow by 2.28 percent and 2.09 percent.Foreign institutional investors contributed to the positive momentum by purchasing a net NT$23.25 billion of shares on the main board, as reported by the Taiwan Stock Exchange.