Despite Chinese military drills near Taiwan, the country’s stock market demonstrated resilience, closing higher on Monday. The Taiwan Stock Exchange (TWSE) witnessed a positive trend with large-cap tech stocks leading the way. Investors remained optimistic ahead of an investor conference by Taiwan Semiconductor Manufacturing Co. (TSMC), a significant player in the chipmaking industry.

The Taiex, Taiwan’s weighted stock index, concluded the day with a gain of 73.65 points, reflecting a 0.32 percent increase, closing at 22,975.29. Market turnover reached NT$314.37 billion (US$9.78 billion). Initially, the market faced downward pressure in response to China’s military activities, but later rebounded as investors showed interest in tech giants like TSMC and Quanta Computer Inc., particularly towards the end of the trading session.

Market analysts noted that the military exercises conducted by China had a brief psychological impact on the local market, which quickly shifted focus back to fundamental factors. TSMC’s upcoming investor conference, scheduled for Thursday, and the ongoing surge in artificial intelligence investments contributed to positive market sentiment. TSMC’s stock performance, remaining stable throughout the day, played a crucial role in offsetting initial market declines.

Government officials, including Premier Cho Jung-tai, closely monitored potential market impacts resulting from the military drills. Analysts projected positive earnings per share (EPS) for TSMC in the coming years, further boosting investor confidence. Semiconductor-related stocks, such as ASE Technology Holding Inc. and MediaTek Inc., saw varied movements, reflecting market dynamics. Companies involved in silicon photonics development for AI applications experienced increased investor interest.

The government’s involvement in bolstering market confidence was evident through fund investments in various sectors, particularly financial stocks. Companies like CTBC Financial Holding Co., Hua Nan Financial Holding Co., and Mega Financial Holding Co. saw gains, contributing to the positive performance of the financial index. In the traditional economy sector, stocks like Uni-President Enterprises Corp. and Far Eastern New Century Corp. outperformed the market, driven by sector-specific developments.

Looking ahead, market observers emphasized the importance of upcoming tech giants’ earnings reports on the U.S. markets, which are expected to provide further guidance during the current earnings season. Despite foreign institutional investors selling a net NT$1.61 billion worth of shares on the main board, the overall market sentiment remained positive, reflecting resilience and investor optimism amidst external geopolitical challenges.