Taiwan TAIEX closes up 1.8% at 20,915.04 points.

Taiwan TAIEX closes up 1.8% at 20,915.04 points.

Taipei, Taiwan — The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, closed on Friday, May 9, 2025, at 20,915.04 points, marking a 1.8% increase from the previous day. This performance was driven by strong earnings reports from major US tech companies, which bolstered investor confidence in the market.

The TAIEX gained 552.61 points to reach its peak for the day, closing at 20,787.64 points. The turnover totaled NT$327 billion (US$10.7 billion), according to CNA and CTEE. The index showed a robust week, rising by 914.91 points, as tech optimism resurged and recovered previous losses.

Among the key performers were Taiwan Semiconductor Manufacturing Company (TSMC), which climbed 4.63% to NT$950 (US$31), and Foxconn, which saw a 4.24% increase to close at NT$147.5. MediaTek, however, experienced heavy selling pressure, finishing down 3.7% at NT$1,300.

Strong earnings from Microsoft and Meta reinforced confidence in the AI sector, lifting related stocks across the board. Quanta Computer rose 5.24% to NT$251, Wistron gained 3.94% to close at NT$105.5, and Wiwynn, which recently announced plans to build a factory in Texas, saw an 8.12% increase to finish at NT$2,065.

With Taiwan's peak summer electricity demand approaching and the country moving toward a nuclear-free policy, investors showed increased interest in heavy electrical equipment and green energy stocks. Shihlin Electric & Engineering, Allis Electric, Luxe Green Energy Technology, and Ibase Solution all hit their daily price limits.

The robotics sector continued its momentum following remarks by Tesla CEO Elon Musk, who announced plans to ramp up humanoid robot production tenfold next year, predicting that robots would outperform top surgeons within five years. Both Ying Han Technology and Taiwan Benefit hit their third consecutive daily limit-ups.

Despite the market's strong performance, institutional analysts advise caution. While sentiment remains positive, recent US GDP data showed the first contraction in nearly three years, prompting concerns over the broader economic outlook. Analysts suggest watching next week's Federal Open Market Committee meeting for potential shifts in US monetary policy.

Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) said that strong US tech firm earnings and steady capital expenditures are boosting AI-related stocks. He added that Taiwan's market is currently recovering from a bearish gap between April 2 and April 7. However, Huang cautioned that with the US expected to announce new semiconductor tariffs in May, the market could enter a consolidation phase. The timing and details remain uncertain, and concerns about their potential impact continue to weigh on sentiment.

Investors are encouraged to conduct their own research and analysis before making investment decisions.

References:
[1] https://taiwannews.com.tw/news/6100707