TAIEX Rises on Middle East Peace Hopes

The Taiwan Stock Exchange TAIEX rose nearly 3% to around 33,570 on Wednesday, snapping a four-day decline and joining a broader rebound in Asian markets as investors priced in hopes of easing tensions in the Iran conflict. US President Donald Trump said his administration is holding talks with Iran, even though Tehran has denied that negotiations are taking place, while the US increases its military presence in the region. The electronics and technology sector led the advance, with market bellwether TSMC rising more than 3% and Delta Electronics surging over 9%. Other notable gainers included Hon Hai Precision Industry (+1.5%), MediaTek (+1.6%), and ASE Technology (+6.2%). Most sectors were also in positive territory, including finance, producer manufacturing, and process industries.

The Taiwan Stock Exchange TAIEX hit a record high of 24,158 around midday Wednesday, rising for the fourth session on optimism over artificial intelligence and partial U.S. tariff exemptions for major chipmakers. Sentiment was further supported by a Wall Street rally on Tuesday after softening U.S. inflation data bolstered expectations of a Fed rate cut in September, along with a 90-day extension of the U.S.-China trade truce. On the trade front, Taiwan’s exports surged 42.0% year-on-year in July, the fastest growth since May 2010, driven by strong shipments to the U.S., ASEAN, and China, while imports rose 20.8%, accelerating from 17.3% in June. The benchmark index is now up about 40% from its April low. Leading gainers included Taiwan Semiconductor Manufacturing (1.3%), Hon Hai Precision Industry (0.5%), Mediatek (1.1%), and Delta Electronics (5.1%).

Taiwan’s benchmark Taiex index tumbled nearly 10% to 19,236 on Monday, pushing its losses past 20% from the July peak and officially entering bear market territory. The sharp drop came in response to new U.S. tariffs. Shares of major exporters TSMC and Foxconn both plunged near 10%, triggering the exchange’s circuit breakers. While semiconductors were not directly targeted by President Trump’s latest tariffs, Taiwan’s trade-dependent economy remains deeply embedded in the global electronics supply chain, from smartphones to automobiles. In response, Taiwan’s stock exchange signaled that more stabilization measures might be rolled out if needed. On Sunday, the top financial regulator imposed a temporary ban on short-selling for the week to curb volatility. Taiwan, hit with a 32% tariff, was singled out by Trump for its large trade surplus. President Lai Ching-te announced plans to boost purchases from and investment in the U.S., aiming for a future zero-tariff agreement.