TAIPEI (Taiwan News) — Taiwan's stock market rallied Thursday, with strong performances from TSMC and gains in large-cap and high-priced stocks such as MediaTek and Largan Precision.

The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed up 143.17 points at 23046.8. Turnover totaled NT$347.99 billion (US$10.71 billion), per CNA.

TSMC was the main focus as its second-quarter cash dividend went ex-dividend. The stock opened with a strong gap up, recouping the dividend amount with a NT$20 (62 cents) increase, which added over 160 points to the TAIEX.

Other large-cap stocks, such as MediaTek, Fubon Financial Holding, Cathay Financial Holding, and ASE Technology Holding, along with high-priced stocks like Largan Precision, eMemory Technology, and Asmedia Technology, also saw gains. The electronics index rose 0.82%, while the financial index climbed more than 1%, serving as key drivers of the market’s rally.

Large-cap stocks, or big caps, are shares of companies with a market value of NT$325 (US$10 billion) or more. These stocks tend to be more stable and less volatile than smaller stocks.

Most traditional industry stocks closed lower, with the food, machinery, glass, and plastics sectors posting losses. The cable, automotive, construction, and tourism indices finished higher.

Investors are watching the US Federal Reserve's interest rate decision next week, Mega International Investment Services Deputy General Manager Huang Kuo-wei observed. Huang noted that a rate cut would provide much-needed liquidity.