TAIPEI (Taiwan News) — The Taiwan stock market started Tuesday (Oct. 22) on a weak note, with a late-day rally helping limit losses to 7.1 points.

Despite a drop of 272.67 points in early trading, the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) rebounded to end the day with a modest decline. It successfully defended the 23,500 level and regained its 5-day moving average, with total trading value exceeding NT$372 billion (US$11.6 billion), per CNA.

The market experienced a period of consolidation near the lower end of its trading range the past two days, Mega International Investment Services Deputy General Manager Huang Kuo-wei (黃國偉) noted. However, technical indicators remain positive, as the index held above the 5-day moving average, preventing a breakdown of the bullish trend.

When prices of stocks, indices, or other assets are consistently increasing, it indicates a bullish trend. The upward movement is often fueled by high investor confidence and a positive outlook for the economy, according to Nadex.

Despite NVIDIA's record-breaking stock price, TSMC has retreated after its initial rally. Meanwhile, Foxconn and Quanta Computer have seen their shares rise, driven by the surge in demand for AI servers.

Shares of electronic connector manufacturer JPC Connectivity and IC packaging firms Lingsen Precision, Spirox, and Creative Sensor all hit their daily price limits, closing at NT$178, NT$20.6, NT$78.9, and NT$64.3, respectively.