Taiwan’s Taiex index rises 2% to 34,449.10

Taiwan’s Taiex index rises 2% to 34,449.10

Taiwan’s TAIEX Index Rises 2% to 34,449.10 Amid Sector Rotation and AI Demand
February 23, 2026

Taiwan’s benchmark TAIEX index closed at 34,449.10 on Friday, rising 2% for the session and marking a significant gain amid broad-based market participation. The index has surged 41.43% year-to-date, driven by optimism around artificial intelligence (AI) demand, U.S. tariff developments, and sector rotation into non-technology stocks.

The index’s performance reflects a shift beyond traditional technology leaders like TSMC, which closed at NT$1,820, contributing 321 points to the TAIEX. Memory-related stocks, including Macronix and Winbond Electronics, saw sharp gains after trading restrictions were lifted, supported by tight supply conditions and AI-driven demand. Optical communications shares also advanced following reports of NT$187.6 billion in orders for fiber-optic cables from Meta Platforms, boosting firms like Ezconn and LuxNet to daily limits.

Bulk shipping stocks rose as freight rates climbed, with the Baltic Dry Index up 12%. Disease-prevention stocks continued to attract buying interest amid global health concerns, including a Nipah virus outbreak in India.

Concord Capital Management’s Liao Chi-hung noted the market’s five-session rally has pushed the TAIEX above its 200-day moving average, with valuations appearing stretched. He emphasized that the index’s near-term trajectory remains tied to TSMC’s performance, while domestic and foreign institutions have raised 2026 target ranges to 34,600–39,000 points. Liao also highlighted ongoing sector rotation into memory, optical communications, and low-earth-orbit satellite components, suggesting a high-level consolidation phase ahead.

Key risks include U.S. policy shifts, earnings reports, and geopolitical tensions, though the recent appreciation of the Taiwan dollar has eased capital outflow pressures. Analysts project the TAIEX could test the 33,000-point level before the Lunar New Year holiday, with caution advised for overextended stocks.

The TAIEX’s 40% rebound from its April 2025 low underscores resilience in Taiwan’s export-driven economy, supported by strong July 2025 export growth of 42% year-on-year. Investors are advised to monitor sector rotations and macroeconomic signals ahead of potential volatility.

This information is not intended as personalized financial advice. Investors should conduct independent research before making decisions.