TAIPEI (Taiwan News) — Taiwan's stock market opened higher and extended gains Friday, buoyed by signals from US Federal Reserve officials suggesting that an interest rate cut could come as early as June.
Investor reaction to interest rate changes often depends on the perceived context. If a rate cut is seen as a response to looming recession risks, it may instead trigger market declines, but if the move is interpreted as lowering borrowing costs and boosting corporate profitability, equities may rise.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, gained 393.92 points to close at 19,872.73, briefly crossing the 20,000-point threshold during intraday trading. Turnover totaled NT$288 billion (US$8.9 billion), per CNA and CTEE.
TSMC opened strong and finished 2.78% higher at NT$888 (US$27). MediaTek gained 3.76%, closing at NT$1,380, while Foxconn rose 1.83% to NT$139.
US financial services firm Morgan Stanley lowered stock price targets for 23 Taiwanese supply chain companies across four sectors, including Apple-related and cyclical component stocks, due to persistent uncertainty over US tariffs on electronic products. The firm’s assumptions include a 10% average tariff on electronic goods, a 5% price hike, stable shipment volumes for iPhones, PCs, and servers this year, and a slight dip in AI server demand.
Despite this, the market reaction remained subdued. Asus gained more than 8%, while Compal Electronics, Acer, and Pegatron posted modest gains.
Supply chain stocks saw gains after Nintendo announced plans to ramp up production of its next-generation gaming console. Genesys Logic and Major-Power Technology hit their daily price limits following strong openings, while Macronix International, PixArt Imaging, Weltrend Semiconductor, and Anpec Electronics rose more than 5%.
Cybersecurity stocks attracted renewed attention after South Korean regulators accused AI firm DeepSeek of transferring user data overseas without consent. Shares of GeoVision, Acula Technology, Vivotek, MetaAge, and Avtech Security also reached their daily price limits.
Despite the strong session, analysts urged caution. JKo Asset Management noted that while industry fundamentals remain solid, investor sentiment is clouded by uncertainty over US trade policy.
Upcoming negotiations on chip tariffs and US trade measures are expected to be key factors influencing market direction. The firm stated that investors are likely to stay on the sidelines until there is greater clarity on US tariff policies.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
