TAIEX Jumps 4.2% on Tech Rally, Rebounding from 2-Month Low

The TAIEX, Taiwan’s benchmark stock index, surged 1,783 points, or 4.2%, to close at 44,233 on Tuesday, erasing losses from the previous two sessions and rebounding from its lowest level since May 22, touched a day earlier, mainly boosted by gains in electronic technology, technology services, distribution services, and producer manufacturing. The electronic technology sector rebounded, jumping 4.6% after falling 0.6% in the previous session, as traders awaited key US tech earnings for clues about the rally in AI-related stocks. TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, continued to advance, rising 3.0% after gaining 1.3% on Monday, as the company expects strong demand for AI chips. Meanwhile, MediaTek, Delta Electronics, and Hon Hai Precision Industry surged 10.0%, 8.5%, and 4.9%, respectively.

The TAIEX, Taiwan’s benchmark stock index, dropped 222 points, or 0.5%, to close at 42,450 on Monday, reversing morning gains, extending losses from the previous session, and lingering at its lowest level since May 22, tracking a decline on Wall Street on Friday amid a renewed selloff in tech stocks. Rising oil prices following US strikes on Iran also weighed on sentiment as inflation concerns fueled expectations of further interest rate hikes. Electronic technology, finance, and process industries mainly weighed on the index. The electronic technology sector fell 0.6% after plunging 7.5% in the previous session. Among the biggest laggards were Nan Ya Plastics (-6.3%), CTBC Financial (-1.0%), MediaTek (-0.9%), and Fubon Financial (-0.5%). However, TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, rose 1.3%, rebounding sharply from a 7.3% slump in the previous session, as the company expects strong demand for AI chips.

The TAIEX, Taiwan’s benchmark stock index, rose 152 points, or 0.4%, to 42,823 in Monday morning trade, after slumping in the previous session, recovering from its lowest level since May 22, reached on Friday, mainly boosted by gains in TSMC shares. TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, rose 2.2% after plunging 7.3% in the previous session, as the company expects strong demand for AI chips, supported by its planned investment of a further $100 billion to expand its Arizona facilities. Meanwhile, Hon Hai Precision Industry advanced 0.9%. However, electronic technology edged down 0.1%, with MediaTek and Delta Electronics falling 0.5% and 0.6%, respectively. Still, rising oil prices following US strikes on Iran capped the gains as inflation concerns fueled expectations of further interest rate hikes. A decline on Wall Street on Friday also limited gains amid a renewed selloff in tech stocks.