Taiwanese equities extended their record-setting streak yesterday, driven by gains in the semiconductor and technology-related sectors, while broader optimism across Asia provided additional momentum.
The TAIEX rose 0.22 percent, or 52.8 points, to close at a record 24,547.38, supported by strong demand for artificial intelligence (AI) supply-chain stocks and semiconductor suppliers.
Markets in Japan, South Korea, Hong Kong and China also ended higher, reinforcing confidence in Taiwan’s export-driven economy, even as Wall Street slipped on weaker-than-expected US employment data.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) closed flat, as profit-taking trimmed earlier gains. Buying rotated to other semiconductor heavyweights, such as integrated circuit (IC) packaging and testing service provider ASE Technology Holding Co (日月光投控), which soared 10 percent.
The disappointing US employment data released on Friday boosted expectations that the US Federal Reserve might cut interest rates at its policy meeting this month, which lent further support to Taiwan’s stock market, as total trading volume reached NT$433.558 billion (US$14.2 billion) yesterday, Taiwan Stock Exchange (TWSE) data showed.
The top five most-actively traded stocks all rose, led by Winbond Electronics Corp (華邦電) and Nanya Technology Corp (南亞科技). Winbond’s increase was bolstered by AI-related demand and an “outperform” rating from Morgan Stanley, keeping investor appetite high, while Nanya benefited from robust DRAM demand.
Foreign institutional investors were the main drivers behind the record rally, buying NT$14.62 billion of Taiwanese shares on the local main board, while proprietary traders added NT$2.6 billion, reflecting a mix of hedging and active trading strategies, TWSE data showed.
Fund houses bucked the trend, offloading NT$1.08 billion and marking their 10th consecutive day as net sellers.
Looking ahead, President Capital Management Co (統一投顧) highlighted several factors that could continue to support Taiwanese stocks, such as Apple Inc’s upcoming product launch and potential relief from US tariffs, as a lower court has questioned their legality.
The opening of Semicon Taiwan this week and OpenAI’s projections for a surge in AI-related spending are expected to provide further tailwinds.
Semicon Taiwan is scheduled to open tomorrow at the Taipei Nangang Exhibition Center, featuring a wide range of AI chips, advanced IC assembly and testing services, and fan-out panel-level packaging technologies, event organizer SEMI said.
Allianz Global Investors Taiwan (安聯投信) said that although the market has reached elevated levels and could face seasonal volatility, medium to long-term prospects remain favorable, given solid fundamentals, rising corporate capital expenditure and sustained AI-related demand.
