Taipei: Shares in Taiwan reached a new high on Tuesday, driven by remarkable performance from contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC). This surge followed major U.S. indexes finishing at all-time highs, spurred by hopes of an upcoming U.S. Federal Reserve rate cut cycle.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange's weighted index, increased by 272.48 points, or 1.07 percent, closing at 25,629.64. The index fluctuated between 25,335.46 and 25,664.81, with a turnover of NT$442.09 billion (US$14.68 billion). Analysts attributed the uptrend to the strengthening Taiwan dollar against the U.S. dollar, fueled by expectations of Fed rate cuts and abundant liquidity from fund inflows.
TSMC, the most heavily weighted stock on the market, rose by 2.40 percent to close at a record NT$1,280.00, after an intraday peak of NT$1,285.00. This performance contributed significantly to the Taiex's rise, adding around 240 points and boosting the electronics index by 1.47 percent. The gains in TSMC and other tech heavyweights were also buoyed by optimism around artificial intelligence development.
Smartphone chip designer MediaTek Inc. saw a 3.37 percent increase, closing at NT$1,535.00, as the company announced its upcoming flagship chip would utilize TSMC's 2nm process, slated for mass production later this year. Additionally, ASE Technology Holding Co., a provider of IC packaging and testing services, saw a 1.80 percent increase, closing at NT$169.50, while memory chip supplier Nanya Technology Corp. soared by 9.67 percent, ending at NT$69.20 due to a product price increase.
Rotational buying within the semiconductor industry remained active, with interest extending to silicon carbide (SiC) stocks. Episil-Precision Inc. saw the maximum daily increase of 10 percent, closing at NT$54.00. In the over-the-counter market, Acme Electronics Corp. surged by 9.64 percent, ending at NT$30.15.
The tech sector also saw Nan Ya Circuit Board Corp. jump by 10 percent, closing at NT$196.50, while WUS Printed Circuit Co. gained 5.45 percent, ending at NT$104.50. In the non-tech sector, the property industry attracted strong buying due to relaxed mortgage rules, with King's Town Construction Co. rising by 7.59 percent to NT$50.30 and Highwealth Construction Corp. gaining 2.87 percent to NT$46.65.
Conversely, Formosa Plastics Corp. and Nan Ya Plastics Corp. experienced declines, losing 0.66 percent to NT$37.50 and 2.00 percent to NT$36.75, respectively. The financial sector saw a slight increase of 0.11 percent, with Cathay Financial Holding Co. adding 1.07 percent to NT$66.10, while Fubon Financial Holding Co. remained unchanged at NT$88.80.
"Liquidity-driven buying is expected to continue to influence the Taiex," said Hua Nan Securities analyst Kevin Su, highlighting expectations for a U.S. rate cut. The TWSE reported that foreign institutional investors purchased a net NT$27.0 billion worth of shares on the main board on Tuesday.