Taiwan Stocks Rebound from Over 6-Month Low

The TAIEX, Taiwan’s benchmark stock index, surged 1,960 points, or 4.9%, to close at 42,060 on Monday, rebounding from its lowest level since April 30, touched on Friday, and ending a seven-session decline after Taiwan's finance ministry and market regulators moved to tighten short-selling restrictions. Both agencies were also ready to deploy the NT$500 billion stock stabilization fund. An upbeat session in US stock futures also lifted sentiment, with almost all subsectors trading in the green, led by electronic technology, which surged 6.8%. TSMC, the world’s largest contract chipmaker and accounting for more than 40% of the market’s total value, surged 4.7%. Other heavyweight tech stocks also jumped, including MediaTek (9.9%), Hon Hai Precision (6.5%), and Delta Electronics (10.0%). Moderating oil prices also lifted sentiment as inflation and interest-rate-hike concerns eased. However, traders anticipated the release of China's trade data and US inflation figures later this week.

The TAIEX, Taiwan’s benchmark stock index, jumped 2,359 points, or 5.4%, to 42,060 on Monday around noon, rebounding from its lowest level since April 30, touched on Friday, after Taiwan's market regulator and finance ministry both pledged to take steps to calm nerves, including imposing curbs on short selling from Monday. Both agencies were also ready to deploy the NT$500 billion stock stabilization fund. Almost all subsectors traded in the green, led by electronic technology, which surged 6.6%. TSMC, the world’s largest contract chipmaker and accounting for more than 40% of the market’s total value, soared 6.3% after slumping 4.7% on Friday. Other heavyweight tech stocks also surged, including MediaTek (9.9%), Hon Hai Precision (8.2%), and Delta Electronics (10.0%). Moderating oil prices also lifted sentiment as inflation and interest-rate-hike concerns eased. However, traders anticipated the release of China's trade data and US inflation figures later this week.

The TAIEX, Taiwan’s benchmark stock index, plunged 1,873 points, or 4.5%, to close at 39,702 on Friday, touching its lowest level since April 30 and tracking declines on Wall Street overnight due to a plunge in AI-related stocks amid worries about the implications of the Democrats' sweeping victory on Tuesday. Almost all subsectors traded in the red, led by electronic technology and producer manufacturing. The broader index extended losses for a seventh consecutive session, with TSMC, the world’s largest contract chipmaker and accounting for more than 40% of the market’s total value, slumping 4.7%. Other heavyweight tech stocks also fell, including MediaTek (-2.0%), Hon Hai Precision (-4.5%), and Delta Electronics (-6.6%). Rising oil prices also pressured sentiment as inflation and interest-rate-hike concerns grew amid renewed risks of a US-Iran conflict. For the week, the index plunged 12.2%, marking its fourth straight weekly loss amid a tech selloff.