Stocks in Taiwan experienced a significant surge of 9.25% following the announcement by US President Donald Trump of a 90-day pause on reciprocal tariffs for most countries. This move alleviated investor concerns, leading to a global market rebound. The TAIEX opened with a substantial leap of 1,615.09 points to 19,006.85. As a result, many stocks hit their daily 10% limit, contributing to a market-wide rally. Heavyweights like Taiwan Semiconductor Manufacturing Co, Hon Hai Precision Industry Co, and MediaTek Inc surged, boosting investor sentiment.
During the trading session, over 1,389 listed companies on the Taiwan Stock Exchange and Taipei Exchange reached their limit-up prices. This recovery followed a recent bear market trend caused by a three-day sell-off. Traders scrambled to reverse leveraged bets amidst the market turbulence.
The rally not only provided relief to the tech sector but also calmed anxieties surrounding recent market volatility. In other parts of Asia, markets also saw positive movements, with Japan’s Nikkei 225, Australia’s S&P/ASX 200, South Korea’s KOSPI, Hong Kong’s Hang Seng index, and Shanghai Composite index all posting gains. European markets mirrored this upward trend, with Germany’s DAX, France’s CAC 40, and the UK’s FTSE 100 all surging.
The Taiwanese government swiftly intervened to stabilize the market amid the turmoil. Measures such as tightening short-selling rules, increasing margin requirements, and activating the NT$500 billion National Stabilization Fund were put in place. Minister of Finance Chuang Tsui-yun indicated a potential expansion of the stabilization fund to mitigate market volatility in light of Trump’s tariff policy impact.
The market response indicated a broader trend of interconnectedness in the global financial landscape. As tensions ease and trade policies evolve, investors across various markets demonstrate a shared sensitivity to policy shifts and geopolitical developments. The synchronized market reactions underscore the importance of international cooperation and stability in fostering economic growth and investor confidence.
Looking ahead, experts emphasize the significance of continued vigilance and adaptability in navigating the dynamic global market environment. While short-term fluctuations may be influenced by geopolitical events, long-term success hinges on strategic planning, diversified portfolios, and a nuanced understanding of market dynamics. As the Taiwan Stock Exchange reflects the broader market sentiment, stakeholders are urged to stay informed, agile, and proactive in managing their investments.
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