Shares on the Taiwan Stock Exchange surged following positive trends in the U.S. market. The Taiex, Taiwan’s benchmark index, closed higher driven by optimism stemming from gains in American markets. This uptrend was fueled by expectations of a potential interest rate cut by the Federal Reserve after disappointing retail sales data for February was released in the U.S.

Investors reacted positively to the lower-than-expected retail sales growth in the U.S., viewing it as a signal that the Fed might consider reducing interest rates. This sentiment led to increased buying activity, with the Taiex closing up by 0.69 percent at 22,271.67 points. The market saw a turnover of NT$273.99 billion (US$8.30 billion).

Analysts noted that investors interpreted the weaker retail sales figures as a favorable development, prompting them to capitalize on perceived opportunities, particularly in large-cap stocks. The tech sector played a significant role in driving the market higher, with heavyweight stocks like Taiwan Semiconductor Manufacturing Co. (TSMC) and MediaTek Inc. posting gains.

In addition to the tech sector, other industries also experienced positive movements. Textile companies such as Far Eastern New Century Corp. and Eclat Textile Co. saw their stock prices rise. The financial sector also received a boost, with companies like Cathay Financial Holding Co. and Mega Financial Holding Co. recording gains.

However, uncertainties related to trade tensions, particularly the tariff threats by the Trump administration, continued to influence market sentiment. Analysts cautioned that despite the day’s gains, the market could remain susceptible to fluctuations driven by external factors.

Foreign institutional investors were observed to have sold a net NT$4.61 billion in shares on the market during the trading session, indicating a mixed sentiment among different investor groups.

Overall, the Taiwan Stock Exchange’s performance was closely tied to the broader sentiment in the U.S. market, reflecting the interconnected nature of global financial markets and the impact of external economic indicators on local stock exchanges. The positive momentum witnessed in Taiwan underscored the market’s responsiveness to international developments and its ability to capitalize on perceived opportunities for growth and investment.