The Taiwan Stock Exchange experienced a significant surge following optimistic trends in the U.S. market. This surge was fueled by the anticipation of a potential interest rate cut by the Federal Reserve after the release of disappointing retail sales data in the U.S. for February. The Taiex, the benchmark index of the Taiwan Stock Exchange, closed higher, reflecting the positive sentiment among investors.

Investors interpreted the below-forecast retail sales growth in the U.S. as a positive sign, leading to increased buying activities in Taiwan. The hope of an interest rate cut by the Federal Reserve drove market optimism. The electronics sector, particularly tech giants like Taiwan Semiconductor Manufacturing Co. (TSMC), played a significant role in boosting the Taiex. Other tech companies such as MediaTek Inc. and ASE Technology Holding Co. also saw gains, contributing to the overall positive trend.

Stocks related to artificial intelligence garnered attention, with expectations surrounding Nvidia Corp.’s annual GPU technology conference influencing investor interest. Companies involved in AI, such as Quanta Computer Inc. and Inventec Corp., experienced notable increases in their stock prices. However, Hon Hai Precision Industry Co., a major iPhone assembler, witnessed a slight decline in its market value.

Beyond the tech sector, companies like Far Eastern New Century Corp. and China Motor Corp. also recorded gains, underscoring the broad-based nature of the market rally. The financial sector also saw an uptick, with companies like Cathay Financial Holding Co. and Mega Financial Holding Co. registering positive movements.

Despite the overall positive performance of the Taiwan Stock Exchange, uncertainties stemming from trade tensions, particularly due to tariff threats by the Trump administration, continued to impact market dynamics. This uncertainty led to a cautious approach among investors, with profit-taking opportunities being closely monitored.

Foreign institutional investors, while the market saw gains, sold a net amount of shares, indicating a mixed sentiment among different investor groups. The market’s resilience in the face of external uncertainties highlighted the confidence of investors in the Taiwanese market’s fundamentals and its ability to navigate global economic challenges.

In conclusion, the Taiwan Stock Exchange’s surge, driven by positive cues from the U.S. market and domestic factors, showcased the resilience and attractiveness of Taiwan’s stock market to investors amid global economic uncertainties.