TAIPEI (Taiwan News) — Taiwan's stock market closed lower Monday after weakness in US equities the previous week weighed on sentiment, with large-cap technology stocks leading declines.
The Taiwan Capitalization Weighted Stock Index (TAIEX) fell 280.54 points to close at 40,891.82. Turnover totaled NT$990.5 billion (US$31.3 billion), according to CNA and CTEE.
TSMC declined 1.1% to NT$2,240. Delta Electronics fell 2.65% to NT$2,020, while Foxconn closed flat at NT$248.5.
MediaTek moved against the broader market trend, rising 4.29% to NT$3,400. The chip designer’s shares have climbed from NT$1,430 over the past month, supported by institutional buying on upward revisions in long-term earnings forecasts, according to UAnalyze.
Selective buying emerged in thematic stocks. Passive component manufacturers extended gains, with Yageo hitting the daily limit-up at NT$501 and Walsin Technology rising 5.58% to NT$217.5 on expectations of improving inventory conditions and a gradual recovery in demand.
Robotics-related stocks also advanced after TSMC Senior Vice President Chang Hsiao-chiang (張曉強) described smart glasses as one of the most promising new forms of AI devices, supporting investor interest in the sector. Mirle Automation, Taiwan Benefit, and Ace Pillar all hit the daily limit-up, according to FTNN.
Low Earth orbit satellite stocks strengthened on reports that SpaceX has moved closer to a potential US listing. Universal Microwave Technology, Papro Technology, WNC, Chin-Poon Industrial, and Compeq Manufacturing all hit the daily limit-up.
The memory sector showed mixed movement after recent gains linked to speculation over potential labor disruptions at South Korean supplier Samsung. Nanya Technology declined 2.09% to NT$305 and Macronix International fell 1.54% to NT$160, while Winbond Electronics edged up 0.77% to NT$130.5.
Analysts said market volatility has increased following earlier gains, reflecting continued selling pressure at higher index levels. While short-term fluctuations are expected to persist, ample market liquidity suggests the broader trend is still viewed as a correction rather than a longer-term downturn, according to CTEE.
Fuh Hwa Taiwan Future 50 Active ETF Manager Lu Hung-yu (呂宏宇) said US markets declined Friday following renewed geopolitical uncertainty and inflation concerns, while the Philadelphia Semiconductor Index also turned negative. Both developments contributed to weaker opening sentiment in Taiwan.
Given strong gains since April and higher levels of borrowed trading activity, short-term volatility may remain elevated. Lu suggested investors look for potential entry opportunities on pullbacks and monitor Nvidia’s upcoming earnings outlook for cues on semiconductor supply chain demand.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
