TAIPEI (Taiwan News) — Taiwan’s stock market closed lower Thursday after investors reacted to US Federal Reserve Chair Jerome Powell’s statement that equity prices are “fairly highly valued.”
The Taiwan Capitalization Weighted Stock Index (TAIEX) fell 172.88 points to end at 26,023.85. Turnover totaled NT$489 billion (US$16 billion), according to CNA and CTEE.
TSMC slipped 1.49% to NT$1,320. Foxconn gained 3.14% to NT$230 amid continued foreign institutional buying, Mediatek gained 1.13% to NT$1,345, while Delta Electronics retreated 0.79% to NT$884.
Compal Electronics gained 5.51% to NT$36.4 after securing a major Dell Technologies artificial intelligence server order. Wistron and Inventec, also Dell partners, advanced more than 3%.
Bicycle maker Giant fell 0.9% to NT$99.9, recovering from a morning loss of nearly 9%, following a US Customs and Border Protection order suspending imports of its Taiwan-made products over forced labor allegations. The company estimated the impact at 4–5% of group revenue.
Higher international oil prices supported petrochemical shares. Nan Ya Plastics rose 5.96% to NT$40.9, while Formosa Plastics, Formosa Chemicals & Fiber, and Formosa Petrochemical each gained more than 2%.
Copper producers also moved higher as global prices increased after a mine accident in Indonesia. First Copper Technology, Hua Eng, and Walsin Lihwa all closed at the daily limit-up.
Cathay Securities Investment Trust analyst Yu Jih-chieh (游日傑) said market conditions are stabilizing as US tariff policies become clearer and the Federal Reserve begins to cut interest rates.
Citing Bloomberg forecasts, Yu noted Taiwan’s AI electronics sector is expected to record profit growth of 29% this year and 12.5% next year.
Non-AI electronics are projected to grow 10% this year and 13.5% next year. Traditional industries may return to 5.9% growth next year after a 25% contraction this year.
Financials are forecast to shift from an 18% decline this year to a 10.2% increase next year.
Yu added that while AI-related growth remains strong, expansion is slowing from a higher base. Performance across non-AI technology, traditional industries, and financials is likely to become more balanced next year.
This information is not intended as personalized financial advice. Investors should conduct their own research before making investment decisions.
