Taipei: Shares in Taiwan made a notable recovery on Tuesday after a downturn in the previous session, driven by positive developments in U.S. markets amid hopeful sentiments regarding tariff negotiations between the United States and its trading partners. The Taiex, the Taiwan Stock Exchange’s weighted index, rose by 297.70 points, or 1.34 percent, closing at 22,553.72. The index fluctuated between 22,401.58 and 22,730.76 throughout the day.
According to Focus Taiwan, the market opened with a 0.74 percent increase, buoyed by the tech-heavy Nasdaq index reaching a new high overnight. This surge led to a focus on the bellwether electronics sector, with strong performance from major players like Taiwan Semiconductor Manufacturing Co. (TSMC). TSMC, being the most heavily weighted stock, saw a 2.36 percent increase, closing at NT$1,085.00, and significantly contributing to the electronics index’s 1.66 percent rise.
MasterLink Securities analyst Tom Tang noted that investor optimism regarding potential trade deals with Washington spurred a rush to acquire shares, including those from TSMC, which had suffered in the previous session. He also pointed out that the expanded turnover highlighted a willingness among investors to engage in trading.
Within the semiconductor industry, smartphone IC designer MediaTek Inc. gained 2.00 percent to finish at NT$1,275.00, while ASIC designer Alchip Technologies Inc. saw a 2.91 percent rise, closing at NT$3,185.00. However, ASE Technology Holding Co., an IC packaging and testing services provider, bucked the trend, ending down 1.36 percent at NT$145.50.
Tang further explained that the buying activity reflected a positive outlook on artificial intelligence development, suggesting the gains were more than just technical. Hon Hai Precision Industry Co., an iPhone assembler and AI server maker, rose 2.80 percent to close at NT$165.50, and Quanta Computer Inc., another AI server supplier, added 2.37 percent to end at NT$281.00. Additionally, Elite Material Co. and Asia Vital Components Co. gained 2.04 percent and 1.62 percent, respectively, fueled by demand in the AI sector.
Old economy sectors also experienced growth, catching up with tech counterparts. The paper index rose by 1.73 percent, with Cheng Loong Corp. and YFY Inc. closing higher. Property developers like Kindom Development Co. and King’s Town Construction Co. also saw gains, while the financial sector slightly underperformed.
Tang mentioned that the day’s gains have improved the technical health of the Taiex, suggesting potential for further upward movement. He speculated that TSMC might soon challenge its previous intraday high of NT$1,160.00.
According to the Taiwan Stock Exchange, foreign institutional investors purchased a net NT$47.15 billion in shares on Tuesday.