Taiwan Shares Surge as TSMC Rebounds to NT$1,000 Mark.

TAIPEI: Shares in Taiwan experienced a significant upswing on Monday, driven largely by gains in the electronics sector. This move came as a relief following the previous week's market weakness. The rally in tech stocks on U.S. markets, particularly on Friday, played a crucial role in bolstering investor sentiment in Taiwan, dealers noted. According to Focus Taiwan, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading contract chipmaker, spearheaded the market's resurgence. The buying momentum extended to other large-cap tech stocks, enabling the Taiex, Taiwan's benchmark weighted index, to break through technical barriers and surpass the 60-day moving average of 22,579 points. The Taiex concluded the trading day at 22,736.93 points, marking a rise of 474.43 points, or 2.13 percent, with fluctuations between 22,456.50 and 22,802.53. The day's turnover amounted to NT$310.67 billion (US$9.52 billion). The market opened with an initial increase of 0.87 percent, quickly gaining traction as electro nics heavyweights, especially TSMC, drew focus. This followed a 0.83 percent rise on the tech-heavy Nasdaq and a 1.52 percent increase on the Philadelphia Semiconductor Index last week. The market's robust performance continued throughout the day, recovering from the prior week's 641.82-point, or 2.80 percent, decline amid concerns over then U.S. President-elect Donald Trump's tariff threats on imports from Canada, Mexico, and China. Mega International Investment Services Corp. analyst, Alex Huang, observed that the gains in U.S. tech stocks and local electronics heavyweights suggested that fears around Trump's tariff threats were already factored in, leading to the market rebound. A decrease in U.S. Treasury yields also made tech stocks more appealing. TSMC was a key contributor to the market's rebound, propelling the Taiex beyond technical barriers. Following a 1.92 percent increase in its American depositary receipts on Friday, TSMC's stock surged 3.92 percent to close at NT$1,035.00 in Taipei on Monday, adding approximately 310 points to the Taiex's rise. This boost also elevated the electronics index and semiconductor sub-index by 2.73 percent and 3.52 percent, respectively. Other major semiconductor stocks also saw increased interest. MediaTek Inc., a designer of smartphone ICs, climbed 4.38 percent to NT$1,310.00, while United Microelectronics Corp., a smaller contract chipmaker, rose 2.41 percent to NT$44.60. ASE Technology Holding Co., known for IC packaging and testing services, finished 1.98 percent higher at NT$154.50. In the broader electronics sector, Delta Electronics Inc., a power management solutions provider, rose 1.97 percent to NT$288.50, and Yageo Corp., a leading MLCC supplier, gained 1.17 percent to NT$520.00. However, buying was limited among other large-cap tech stocks. Hon Hai Precision Industry Co., an iPhone assembler and AI server manufacturer, saw a modest rise of 0.26 percent to NT$196.00, and Quanta Computer Inc., another AI server producer, increased by 0.69 percent to NT$293.0 0. Huang noted that the electronics sector's dominance during the session left old economy stocks marginalized. Amid ongoing concerns about weak demand from China, companies like Formosa Petrochemical Corp. and Formosa Chemicals and Fibre Corp. experienced declines. Conversely, Nan Ya Plastics Corp. ended up 0.90 percent at NT$39.05. The steel industry continued to suffer from a global supply glut, with Tung Ho Steel Corp. and Ta Chen Stainless Pipe Co. seeing declines, while China Steel Corp. remained unchanged. In the shipping sector, stocks outperformed other old economy sectors due to geopolitical tensions in the Middle East. Evergreen Marine Corp., Taiwan's largest container cargo shipper, saw a 1.84 percent increase to NT$221.00, and Yang Ming Marine Transport Corp. rose 1.50 percent to NT$74.30. The financial sector benefited from an improving bottom line, gaining 1.54 percent overall. Cathay Financial Holding Co. increased by 2.89 percent to NT$67.60, and Fubon Financial Holding Co. rose 1.82 perce nt to NT$89.60. Huang advised investors to monitor upcoming October sales reports from listed companies, as well as the Taiex's return to its 20-day moving average of 22,894 points, which could signal a healthier technical position for the market. According to Taiwan Stock Exchange, foreign institutional investors purchased a net NT$15.02 billion in shares on Monday.