The Taiwan stock market showed resilience and optimism, rising on speculation of a potential US rate cut. This positive momentum came despite Morgan Stanley’s downward revision of stock prices for Taiwanese companies. The market’s upward trend was fueled by signals from US Federal Reserve officials hinting at a forthcoming interest rate reduction, possibly as early as June.
Investor reactions to interest rate adjustments are often influenced by the perceived economic context. If a rate cut is viewed as a measure to counter recession risks, it could trigger market downturns. However, if interpreted as a means to lower borrowing costs and enhance corporate profitability, equities may see an uptick.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, known as TAIEX, surged by 393.92 points to close at 19,872.73, briefly surpassing the 20,000-point mark during intraday trading. The total turnover reached NT$288 billion (US$8.9 billion), as reported by CNA and CTEE.
Leading Taiwanese companies exhibited robust performance, with TSMC registering a 2.78% increase, closing at NT$888 (US$27). MediaTek also saw a gain of 3.76%, ending at NT$1,380, while Foxconn rose by 1.83% to NT$139.
Despite Morgan Stanley’s cautious stance, the market response remained steady. Asus recorded an increase of over 8%, while Compal Electronics, Acer, and Pegatron witnessed modest gains. Supply chain stocks experienced a boost following Nintendo’s announcement of plans to scale up production for its next-generation gaming console.
Notably, cybersecurity stocks garnered renewed interest after South Korean regulators accused AI firm DeepSeek of unauthorized data transfers. Shares of GeoVision, Acula Technology, Vivotek, MetaAge, and Avtech Security hit their daily price limits, reflecting investor confidence in this sector.
While the market displayed strength, analysts advised vigilance amid lingering uncertainties. JKo Asset Management highlighted solid industry fundamentals but cautioned about investor apprehensions stemming from ambiguous US trade policies. The upcoming negotiations on chip tariffs and trade measures are anticipated to be pivotal in shaping market sentiment.
Investors are advised to exercise prudence and conduct thorough research before making investment decisions. The market outlook remains subject to fluctuations based on evolving global trade dynamics and policy developments. Stay informed and stay cautious in navigating the dynamic landscape of the Taiwan Stock Exchange.
🔗 Reddit Discussions
- Xbox wants to know why devs make games for PS5 and skip Xbox consoles: “If you aren’t on Xbox, we’d love to know why. And honestly, if you are using our competitor’s products, you probably have a great perspective we could learn from!” says Xbox
- TIL that Nintendo pushed usage of the term “game console” so people would stop calling products from other manufacturers “Nintendos”, otherwise they would have risked losing their trademark.
- The biggest disappointment is not the game. Its CDPR lying, scamming console players into buying a broken product and advertising features under the ‘ work in progress’ just to cut the majority out of the game. I dont trust CDPR anymore and i dont believe anything the management is saying anymore.