TAIPEI (Taiwan News) — Taiwan's stock market rose on Tuesday, buoyed by a strong session on Wall Street and optimism surrounding the collaboration between Nvidia and TSMC.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, gained 344.58 points to close at 19,857.67. Despite the positive movement, turnover narrowed to NT$296 billion (US$9 billion). Investors remained cautious ahead of TSMC’s upcoming earnings call on Thursday and awaited updates on US semiconductor-related tariff policies, per CNA and CTEE.
TSMC finished the day up 1.39% at NT$877 (US$27), while Foxconn rose 0.72% to NT$139.5. MediaTek saw a 1.07% decline, closing at NT$1,385.
The computer peripherals sector showed robust gains, with MSI rising 7% and Wistron gaining 5.34%. Wistron also topped the trading volume chart among all listed stocks on the TAIEX.
Electronic components and distribution stocks similarly enjoyed a strong session. Sector-wide gains averaged 3%, reflecting a broader return of investor confidence.
Following a market downturn last week, the silicon photonics sector made a powerful recovery. Several optical communication companies reported strong March revenues, prompting stocks such as Elite Advanced Laser, LandMark Optoelectronics, and LuxNet to hit their daily limit.
Silicon photonics is a technology that integrates optical components onto small chips using semiconductor manufacturing techniques. It enables faster data processing and higher bandwidth, but technical challenges remain in combining optics and electronics, per Sinotrade.
After a rally among Taiwan’s top container shipping stocks, momentum showed signs of easing. Wan Hai Lines extended its Tuesday rally, gaining 6% to close at NT$86, while Evergreen Marine increased by 1.9%. Yang Ming Marine Transport ended the day down 0.54%.
US President Donald Trump’s suggestion of potential support for automakers facing tariffs sparked significant gains across Taiwan’s auto parts sector. Thirteen companies, including Ta Yih Industrial, TYC Brother Industrial, Gordon Auto Body Parts, and Hota Industrial, reached their daily limit-up, contributing to a 2.85% gain for the sector.
Energy and utilities stocks led the day’s gains, with a 4.92% rise, followed closely by information services, which gained 4.83%. Cement stocks underperformed, falling 0.15%.
Despite the TAIEX’s increase, mainly driven by large-cap technology stocks, overall market sentiment remained cautious. Investors were more reserved, with less short-term speculative trading, indicating that the market might face challenges in breaking through the key 20,000-point level, analysts observed.
Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) said easing US tariff pressures has contributed to the rebound in Taiwan’s stock market, with the TAIEX gradually recovering from losses in early April. Huang believes the worst uncertainty over tariffs may be over, per CNA.
Investors will monitor the outcomes of US trade negotiations and key insights from TSMC’s earnings call, particularly regarding tariffs and the company’s partnerships. Historically, Taiwan’s stock market tends to rise before TSMC’s earnings call, unless the call reveals unexpected developments.
Typically, the market continues to rise following the earnings call, but this time, uncertainty surrounding US tariffs presents a new challenge. If tariff changes do not reduce TSMC's financial forecast, it would likely be viewed as a positive outcome.
Huang believes that any impact from tariffs on the sales of Apple or Nvidia products in the second half of the year could influence the market. Even if TSMC maintains its own financial forecast, any adjustments to the outlook for the semiconductor, networking, or consumer electronics sectors would still raise concerns among investors.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
