TAIPEI (Taiwan News) — Taiwan’s stock market closed higher on Tuesday as investor sentiment improved following remarks by former US President Donald Trump suggesting a possible ceasefire between Israel and Iran.
The Taiwan Capitalization Weighted Stock Index (TAIEX) gained 456.74 points to close at 22,188.76. Turnover totaled NT$394 billion (US$13 billion), per CNA and CTEE.
TSMC rose 2.94% to NT$1,050. MediaTek added 1.2% to NT$1,270, while Foxconn climbed 2.88% to NT$160.5.
TSMC’s gains also lifted related concept stocks, with grinding wheel maker Kinik hitting NT$300 and closing at the daily limit. Other electronics-sector gainers included Chroma ATE, United Integrated Services, Winstek Semiconductor, Daxin Materials, M31 Technology, and GlobalWafers—all rising more than 5%.
Memory-related stocks saw renewed interest following a rise in DDR4 DRAM spot prices. DRAM chips are essential for temporary data storage in PCs and mobile devices.
Winbond Electronics gained 2.3% with a trading volume of 240,000 lots (240 million shares). Nanya Technology fell 3% on heavy trading, while Macronix International, Silicon Power Computer & Communications, and Apacer posted modest gains.
Initial reports that Iran planned to block the Strait of Hormuz—a key route for 20% of global oil shipments—raised concern. But later news of potential peace talks between Israel and Iran eased market tension, supporting shipping stocks.
Evergreen Marine rose 1.95% to NT$209, Yang Ming Marine Transport climbed 1.67% to NT$73.1, and Wan Hai Lines, which went ex-dividend, gained 0.85% to NT$94.6.
As geopolitical worries subsided, international oil prices pulled back, triggering divergent movement in oil-related exchange-traded funds. ETFs are investment vehicles that track specific market indices.
The Jko S&P GSCI Brent Crude 2x Leveraged ER Futures ETF dropped over 20% on volume exceeding 160,000 contracts. Conversely, the Yuanta S&P GSCI Crude Oil 1x Inverse ER Futures ETF rose 9.95% with more than 150,000 contracts traded.
The Jko ETF aims to deliver twice the daily return of its underlying index, meaning a 1% oil price move can cause a roughly 2% ETF shift. The Yuanta inverse ETF moves in the opposite direction, typically falling 1% if oil prices rise 1%.
Falling oil prices weighed on Formosa Petrochemical, which dropped 4.79% to NT$36.75.
Battery backup unit (BBU) concept stocks also attracted attention ahead of Nvidia’s shareholder meeting. BBUs provide temporary power during outages, safeguarding data in server systems.
Dynapack International Technology gained 9.5%, Advanced Energy Solution rose nearly 5%, and both Sysgration and Synergy ScienTech climbed more than 3%.
Taishin Securities Investment Advisory Vice President Huang Wen-ching (黃文清) noted that while ceasefire talks remain uncertain, market sentiment has shifted slightly toward optimism.
He said capital is returning to electronics stocks with strong fundamentals in artificial intelligence, but added that performance is likely to remain stock-specific in the near term.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
