Taiwan's weighted index opens up 2.07%

Taiwan's weighted index opens up 2.07%

Taipei, July 2, 2025 — The Taiwan Stock Exchange (TWSE) witnessed a significant upturn on Thursday, with the Taiex, the weighted index, surging by 2.07% to 23,971.62 points by the close of trading. This rebound comes amidst global market volatility, particularly in the electronics sector, which has been under pressure due to overnight losses in U.S. tech stocks [1].

Analysts attribute the market's volatility to the recent policy shifts and geopolitical tensions. Alex Huang, an analyst at Mega International Investment Services, noted, "The market had been on a sharp upward trajectory since June, and today's rise can be seen as a correction following the overnight losses on U.S. markets. Investors are likely to remain cautious, keeping a close eye on the U.S. Federal Reserve's next move" [1].

The electronics sector, a major contributor to Taiwan's economy, experienced a significant drop in the previous session. Key players like Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry Co. (Foxconn) saw their shares plummet by 3.38% and 3.61%, respectively [1]. However, the latest rise in the Taiex index indicates a potential recovery in investor confidence.

In parallel, Taiwan's Exchange Traded Funds (ETFs) market has been gaining traction with the introduction of Active ETFs. By the end of July 2025, six Active ETFs had been successfully listed on the TWSE, marking a significant milestone in the market's evolution. These Active ETFs offer investors a blend of intraday tradability and professional management, providing greater flexibility and transparency [2].

The performance of these Active ETFs has been impressive, with returns ranging from 15.7% to 23.2% from June 2 to August 7, 2025, outperforming the TAIEX index's 12.4% gain over the same period [2]. This indicates that Active ETFs have the potential to deliver excess returns, although their long-term performance remains to be observed.

In conclusion, Taiwan's weighted index experienced a notable upturn, driven by market corrections and investor sentiment shifts. The introduction of Active ETFs continues to diversify Taiwan's capital market, offering investors a range of new opportunities.

References:
[1] Focus Taiwan. (2025, Aug. 20). Shares in Taiwan tumbled more than 2 percent Wednesday morning. Retrieved from https://focustaiwan.tw/business/202508200007
[2] Taiwan Stock Exchange. (2025). Active ETFs in Taiwan: A Comprehensive Analysis. Retrieved from https://www.twse.com.tw/market_insights/en/detail/8a8216d697fc438f0198c56e95fa0338