Taiwan's TAIEX Index rises 2% to 21,550.29

Taiwan's TAIEX Index rises 2% to 21,550.29

The Taiwan Stock Exchange (TSE) saw a significant rebound on Tuesday, with the TAIEX Index rising by 2% to close at 21,550.29. The index had previously experienced two consecutive sessions of decline, dropping nearly 360 points or 1.7% [1].

The global markets, particularly the Asian markets, were cautiously optimistic following the outlook for interest rates. While the European markets were slightly lower, the U.S. bourses ended the day with a mild positive lead, which was followed by the Asian markets [1].

The TSE's performance was driven by a mix of sectoral performances. Technology stocks and plastics companies experienced losses, while the financial sector was mixed. Among the active companies, Cathay Financial rose by 0.16%, while Mega Financial tumbled by 1.39%. Taiwan Semiconductor Manufacturing Company (TSMC) slumped by 2.17%, but the overall index managed to gain momentum [1].

The global markets were influenced by several factors. Renewed trade concerns between the U.S. and China weighed on the markets, but optimism about the U.S. economic outlook due to a weak manufacturing report from the Institute for Supply Management (ISM) helped to stabilize the markets [1]. Additionally, crude oil futures moved sharply higher due to escalating geopolitical tensions and U.S. sanctions on Russia [1].

TSMC's CEO, Dr. C.C. Wei, has expressed confidence in the company's dominance in the AI chip market. He stated that TSMC's leadership in process technology, production scalability, and popularity will ensure that orders will always flow towards the company, regardless of competition. The company is well-positioned to capitalize on the growing demand for AI technologies, which is expected to offset any potential losses from tariffs [2].

The rise in the TAIEX Index can be attributed to the strong performance of TSMC and other technology companies, as well as the positive outlook for interest rates. The index's performance is a reflection of the broader global market trends and the resilience of the Taiwan stock market in the face of geopolitical tensions.

References:
[1] https://www.nasdaq.com/articles/tech-shares-likely-boost-taiwan-stock-market-0
[2] https://wccftech.com/tsmc-ceo-says-it-will-always-win-in-the-ai-chip-race/