TAIPEI (Taiwan News) — Taiwan’s stock market advanced on Wednesday, with the benchmark index maintaining high turnover and closing at a fresh high, moving closer to the 33,000-point mark.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, rose 485.9 points to end at a record 32,803.82. Turnover reached NT$831 billion (US$26.6 billion), according to CNA and CTEE.
TSMC led the gains, rising 2.25% to close at a new high of NT$1,820. The chipmaker contributed about 321 points to the TAIEX, while its market capitalization surpassed NT$47 trillion.
Foxconn finished flat. Delta Electronics gained 2.40% to NT$1,280, and MediaTek added 0.28% to NT$1,780.
Memory-related stocks resumed advances after being lifted from trading restrictions, supported by artificial intelligence demand and tight supply conditions. Macronix, Winbond Electronics, and PSMC hit their daily limit-ups, while Nanya Technology and Phison Electronics climbed more than 7%.
Optical communications shares also rose after reports that Meta Platforms placed NT$187.6 billion in orders with Corning for fiber-optic cables used in AI data centers, boosting demand expectations. Ezconn, Browave, Landmark Optoelectronics, LuxNet, PCL Technologies, and Apogee Optocom all closed at their daily limits.
Optical communications, which use light waves to transmit information through fiber-optic cables, offer high speeds and low signal loss. Data is converted into light signals, sent through the fiber, and then converted back into electrical signals at the receiving end, according to Pocket Securities.
Bulk shipping stocks advanced as freight rates climbed, with the benchmark Baltic Dry Index up 12%. Sincere Navigation, U-Ming Marine Transport, and China Maritime Transport rose between 5% and 8% after earlier touching their daily limits.
Disease-prevention stocks continued to draw buying interest following reports of a Nipah virus outbreak in India. Universal, Maobao, Radiant Innovation, Abnova, KNH, and Nam Liong closed at their daily limit-ups.
Concord Capital Management investment director Liao Chi-hung (廖繼弘) said the market has risen for five consecutive sessions and is trading at elevated levels. The index has diverged from its seasonal and annual moving averages, suggesting valuations are stretched, according to CTEE.
Liao said the TAIEX’s near-term direction remains closely linked to TSMC’s performance, making it difficult to set a clear upper limit. Domestic and foreign institutions have raised their 2026 index targets to between 34,600 and 39,000 points.
He said market gains are broadening beyond heavyweight technology stocks. Strength is rotating into sectors such as memory, optical communications, low-earth-orbit satellites, printed circuit boards, and passive components.
Looking ahead, Liao said the market is likely to trade in a high-level consolidation with ongoing sector rotation, barring major external disruptions. Key factors to watch include US policies, earnings reports from Taiwan and US companies, tariff issues, geopolitical tensions, and the Federal Reserve’s interest rate outlook, which CNBC reports has been held steady.
Liao added that the recent appreciation of the Taiwan dollar has helped ease capital outflow pressure. Rising borrowing for stock purchases suggests investors remain confident.
He said the index could reach the 33,000-point level before the Lunar New Year holiday, though investors should remain cautious toward stocks that have already posted significant gains and pay attention to shares that have lagged the broader market.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
