The Taiwan Stock Exchange demonstrated resilience despite fluctuations in the U.S. market. On a cautious note, Taiwan shares closed lower but managed to recover from earlier losses. The Taiex, Taiwan Stock Exchange’s weighted index, concluded with a 0.70 percent decrease at 22,596.88 after fluctuating between 22,539.50 and 22,700.94, with a turnover of NT$400.21 billion (US$12.15 billion).

The market initially opened 1.09 percent lower following declines in the Dow Jones Industrial Average and the Nasdaq index due to U.S. President Donald Trump’s confirmation of tariffs on Canadian and Mexican imports. Subsequently, the Taiex experienced a nearly 400-point drop before a resurgence led by bargain hunters targeting select electronics giants, aiding the market’s partial recovery by the session’s end.

The electronics index closed with a 0.80 percent decrease at 1,225.16, rebounding from a low of 1,210.70. Notably, certain tech heavyweights defied the downtrend, including MediaTek Inc., which rose by 2.38 percent, and Quanta Computer Inc., which gained 3.19 percent. Hon Hai Precision Industry Co. also saw a 0.29 percent increase.

Taiwan Semiconductor Manufacturing Co. (TSMC), a pivotal stock, faced a 1.96 percent decline to NT$1,000.00. Trump’s statement regarding TSMC’s exemption from tariffs post its US$100 billion U.S. investment commitment influenced investor sentiment. TSMC’s decision positively impacted its suppliers, with United Integrated Services Co. and Scientech Corp. experiencing notable gains.

However, Trump’s tariff threats continued to impact non-tech sectors adversely. In the traditional economy domain, companies like Uni-President Enterprises Corp., China Steel Corp., and TCC Group Holdings Co. witnessed declines. The financial sector also faced a 0.98 percent fall, with Fubon Financial Holding Co. and Cathay Financial Holding Co. registering decreases.

The technical fragility of the Taiex suggests the importance of investor vigilance amid potential rebounds. Foreign institutional investors notably sold a net NT$57.04 billion worth of shares on the main board, underscoring the cautious market sentiment. Overall, the Taiwan Stock Exchange’s ability to weather U.S. market volatility highlights its resilience and adaptability in the face of global economic fluctuations.