Shares in Taiwan closed higher on Tuesday, building on gains from the previous session, with the Taiex on the Taiwan Stock Exchange finishing at 20,232.63 points, up 0.99 percent. The market rebounded from an earlier low, driven by a surge in turnover to NT$238.64 billion (US$7.39 billion). This positive momentum followed the index surpassing the 20,000-point mark for the first time in weeks, spurred by a technical rebound.
After opening slightly lower, the market quickly recovered as investors seized opportunities amidst recent tariff-induced losses. Non-tech stocks attracted buying interest, while the electronics sector experienced mixed performance. Reports of Huawei Technologies testing a new AI chip to rival Nvidia Corp.’s impacted semiconductor stocks, including the heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC).
While TSMC and other tech stocks remained in consolidation mode, the broader market saw a rotation towards old economy and financial stocks. The electric machinery sector surged by 3.73 percent, with companies like Fortune Electric Co. and Shihlin Electric & Engineering Corp. posting gains. Additionally, the petrochemical industry rose by 1.94 percent, led by Formosa Plastics Corp. and Nan Ya Plastics Corp.
Amid expectations of high cash dividend payouts, the financial sector also saw a 1.49 percent increase, with Fubon Financial Holding Co. and Cathay Financial Holding Co. registering gains. Despite the positive performance of the Taiex, trading volume remained relatively subdued as investors exercised caution ahead of potential semiconductor-related tax announcements.
Foreign institutional investors remained active, purchasing a net NT$9.40 billion worth of shares on the main board. Analysts highlighted technical hurdles facing the index, with uncertainties surrounding US semiconductor taxation posing challenges. The market outlook suggests ongoing cautious optimism as investors navigate geopolitical and trade-related developments.
The day’s trading activity reflected a broader sentiment of resilience and adaptability within Taiwan’s stock market, showcasing the ability of investors to respond to external factors and market dynamics. As global economic conditions continue to evolve, Taiwan’s stock exchange remains a key barometer of regional sentiment and investor confidence.
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