Shares on the Taiwan Stock Exchange experienced a significant surge driven by Taiwan Semiconductor Manufacturing Co. (TSMC), leading to a 1.22 percent increase in the Taiex index. The market closed with a gain of 275.02 points at 22,871.90, with a turnover of NT$360.42 billion. TSMC’s positive performance, with its ADRs rising 4.06 percent, influenced the market, as the company announced an additional US$100 billion investment in Arizona over the next four years.

Investors responded favorably to TSMC’s investment plans, anticipating potential benefits in avoiding tariffs, particularly amid the uncertain trade environment. Analysts noted that TSMC’s move could mitigate risks associated with tariffs imposed by the previous administration. This optimism surrounding TSMC’s investment also impacted other semiconductor stocks, such as Global Unichip Corp., ASE Technology Co., and MediaTek Inc., which saw gains in their share prices.

Additionally, old economy stocks witnessed increased interest, partly fueled by a rise in commodity prices. Companies like Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp., and Formosa Plastics Corp. experienced notable surges in their stock prices. Bargain hunters were attracted to these stocks due to their relatively low valuations, contributing to the overall market momentum.

In the financial sector, Cathay Financial Holding Co. saw a modest increase, while E. Sun Financial Holding Co. experienced a slight decline. Despite the day’s positive performance, market analysts highlighted that the ongoing tariff war’s uncertainties continued to linger, impacting investor sentiment. Foreign institutional investors, despite the market’s uptrend, divested shares worth NT$14.07 billion on the main board, reflecting a cautious approach amidst the prevailing trade challenges.

The Taiwan Stock Exchange’s rally, fueled by TSMC’s resurgence and strategic investment plans, underlines the market’s resilience and the significance of key players in shaping investor confidence. The evolving dynamics of global trade relations, particularly in the semiconductor industry, further emphasize the need for companies to adapt and innovate to navigate the complex economic landscape. The market’s response to TSMC’s initiatives not only reflects immediate market movements but also underscores broader implications for Taiwan’s economy and its position in the global tech industry.