TAIPEI (Taiwan News) — Taiwan stock index futures, which reflect investor expectations for the broader stock market, hit a record high in night trading.

The contract briefly reached 36,037 points before closing up 597 points at 36,027, marking a historic high. The gains suggest Taiwan’s stock market may soon test its own record levels, according to CNA and Ettoday Finance.

Taiwan’s benchmark index, the Taiwan Capitalization Weighted Stock Index (TAIEX), logged its second consecutive record close on Monday. It stood at 35,457.29 points.

Unlike regular transactions, where goods are exchanged right away, futures are contracts to buy or sell something at a fixed price on a later date. These contracts clearly set the price, amount, and timing of the trade, according to Sinotrade.

In this case, the futures are tied to the TAIEX, which tracks the overall performance of listed Taiwanese companies, with larger firms having a stronger influence on its movements. As a result, the futures reflect investor expectations for the index and are commonly used to take positions on or manage risk related to overall market direction.