Taiwan Stocks Hit Record High on Tech Rally

The TAIEX, Taiwan’s benchmark stock index, rose 627 points, or 1.5%, to 41,997 in Friday morning trade, gaining for a second straight session and tracking a rally on Wall Street overnight as oil prices eased amid optimism over a US-Iran deal to end the war. The broader index hit a record high, mainly boosted by gains in electronic technology and technology services stocks. The electronic technology sector rose 1.5%, with Taiwan Semiconductor Manufacturing Company (TSMC), which accounts for more than 40% of the market’s total value, up 0.2%. Meanwhile, MediaTek jumped 6.2%, while Delta Electronics and Hon Hai Precision each gained 1.0%. Markets were attempting to maintain positive momentum after posting their fifth-largest single-day gain a day earlier. However, traders remained focused on the upcoming release of US GDP data and the PCE price index for Q2 next week. For the week, the index is on track for a 2.0% gain after declining in the previous week.

The TAIEX, Taiwan’s benchmark stock index, dropped 262 points, or 0.4%, to 40,911 around midday on Monday, retreating for the second straight session and tracking declines in U.S. futures amid escalating tensions in the Middle East after U.S. President Trump warned Iran, while investors also awaited Nvidia’s earnings report. The broader index touched its lowest level since May 5, mainly weighed down by losses in electronic technology, financials, technology services, and health technology stocks. The electronic technology sector fell 0.8%, with Taiwan Semiconductor Manufacturing Company (TSMC), which accounts for more than 40% of the market’s total value, down 1.6%, while Delta Electronics plunged 3.4%. A series of weak economic data from China also pressured sentiment, while markets anticipated the PBOC’s interest rate decision later this week. Other major losers included ASE Technology Holding (-7.0%), Unimicron Technology (-2.2%), and Accton Technology (-1.1%).

The TAIEX fell 39 points, or 0.1%, to 41,712 in Friday morning trade in a choppy session, erasing gains from the previous session and mainly weighed down by electronic technology and technology services. The decline came as traders took profits after the index closed in the green a day earlier and hit a record high last week amid a surge in tech sectors. Technology services dropped 1.4%, while electronic technology fell 0.2%, with Delta Electronics declining 1.6% after a 0.5% fall in the previous session. The index’s decline was partly capped by gains in TSMC, which accounts for more than 40% of the benchmark, rising 0.7%. However, a rally on Wall Street overnight, buoyed by strength in AI-related companies and optimism over the US-China summit, limited further downside. Traders also assessed remarks from U.S. Secretary of State Marco Rubio on Thursday that U.S. policy on Taiwan remains unchanged. Other early decliners included Wiwynn Corporation (-2.6%) and V5 Technology (-5.4%).