Stocks in Taiwan experienced a significant surge of 9.25% following the announcement by US President Donald Trump of a 90-day pause on reciprocal tariffs for most countries. This move alleviated investor concerns and contributed to a global market rebound. The TAIEX opened with a sharp increase of 1,615.09 points, reaching 19,006.85. The market then stabilized as various stocks hit their daily limit, preventing further gains and maintaining a modest turnover of NT$197.494 billion.
Key heavyweight stocks such as Taiwan Semiconductor Manufacturing Co, Hon Hai Precision Industry Co, and MediaTek Inc surged by 10%, leading a widespread market rally that boosted investor confidence. The New Taiwan dollar also saw a 0.6% increase against the US dollar, marking its most significant intraday rise since the previous year.
During the trading session, more than 1,389 listed companies on the Taiwan Stock Exchange and Taipei Exchange reached their limit-up prices, signaling a robust market response. This surge came on the heels of a three-day market downturn that pushed the TAIEX into a bear market, prompting traders to reverse leveraged positions.
The rally not only provided relief for technology stocks but also assuaged concerns stemming from recent market volatility. Across Asia, markets responded positively, with Japan’s Nikkei 225 surging over 9%, Australia’s S&P/ASX 200 rising by 4.5%, and South Korea’s KOSPI gaining 6.6%. Additionally, Hong Kong’s Hang Seng index and Shanghai Composite index experienced increases, while European markets showed early surges as well.
In response to market turbulence, the Taiwanese government swiftly implemented measures to stabilize the situation. Actions included tightening short-selling regulations, increasing margin requirements, and activating the NT$500 billion National Stabilization Fund. Minister of Finance Chuang Tsui-yun indicated that the ministry is evaluating the need to expand the stabilization fund to counter the impact of Trump’s tariff policies.
The market’s response underscored the interconnectedness of global economies and the impact of geopolitical decisions on financial markets. The swift and coordinated actions by governments and financial institutions reflect the efforts to maintain stability and confidence in the face of uncertainty.
Market analysts emphasized the importance of monitoring ongoing developments and potential shifts in market dynamics. The resilience displayed by investors amid challenging conditions highlights the adaptability and responsiveness required in today’s interconnected financial landscape.
As the market continues to navigate geopolitical challenges and economic uncertainties, stakeholders are urged to remain vigilant and agile in their strategies. The recent market rally serves as a reminder of the dynamic nature of global markets and the need for proactive risk management and strategic decision-making.
🔗 Reddit Discussions
- I built a program that tracks mentions and sentiment of stocks across Reddit and Twitter to find rising stocks! This week’s top stock and its DD: Taiwan Semiconductor ($TSM)
- Yikes. Semiconductor stocks are in for a world of hurt.
- Your current favorite stocks to diversify away from this insane AI/semiconductor rally?