Despite China’s military exercises near Taiwan, the Taiwan Stock Exchange remained resilient and closed higher. The Taiex, the main index of the exchange, ended the day up 0.32% at 22,975.29 points, with a turnover of NT$314.37 billion. Initially, the market faced downward pressure in response to the military drills but recovered as investors turned their focus to positive fundamentals.

Large-cap tech stocks, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Quanta Computer Inc., played a key role in driving the market higher. Investors showed optimism towards TSMC’s upcoming investor conference, where expectations were high for positive developments in the artificial intelligence sector. This optimism helped offset the initial losses caused by China’s military activities.

TSMC, a heavyweight stock in the market, closed unchanged after a recovery from early losses, contributing significantly to the market’s positive performance. Semiconductor stocks like ASE Technology Holding Inc. and Elite Advanced Laser Corp. also saw gains, reflecting the market’s confidence in the tech sector.

Government-led funds likely supported the market, particularly in the financial sector, with stocks like CTBC Financial Holding Co. and Hua Nan Financial Holding Co. posting gains. Additionally, certain old economy stocks, such as Uni-President Enterprises Corp. and Shihlin Electric & Engineering Corp., outperformed, buoyed by expectations of increased profitability.

Looking ahead, market watchers are keeping a close eye on TSMC’s investor conference and the upcoming earnings reports of tech giants in the U.S. markets. Despite foreign institutional investors selling a net NT$1.61 billion worth of shares, the overall market sentiment remains positive, driven by strong fundamentals and optimism in key sectors like technology and finance.

In conclusion, the Taiwan Stock Exchange demonstrated resilience in the face of external geopolitical challenges, showcasing investor confidence and a focus on sound fundamentals to navigate market fluctuations.