TAIPEI (Taiwan News) — Taiwan’s benchmark stock index rebounded on Tuesday, recovering more than 70% of the previous session’s decline as most sectors recorded gains.
The Taiwan Capitalization Weighted Stock Index (TAIEX) rose 1,201.66 points to close at 44,704.44. Turnover totaled NT$1.15 trillion (US$36.4 billion), according to CNA and CTEE.
The combined market capitalization of listed companies reached NT$145.84 trillion, according to the Taiwan Stock Exchange. All sector indices finished higher except tourism and hospitality.
TSMC rose 0.44% to NT$2,305. Foxconn gained 2.97% to NT$277.50, Delta Electronics advanced 7.1% to NT$2,415, and MediaTek hit the daily limit-up at NT$4,475.
Optical component makers were among the day’s strongest performers. Largan Precision, Genius Electronic Optical, Ability Opto-Electronics, Kinko Optical, and Unique Opto-Electronics all closed limit-up.
Investor interest in the sector has been supported by growing demand for advanced sensing components as artificial intelligence applications expand from text and image generation to edge AI systems capable of interacting with the physical world, according to Sinotrade.
Passive component stocks also attracted strong buying. Market leader Yageo hit the daily limit-up, while Kaimei Electronic, Lelon Electronics, Ta-I Technology, Walsin Technology, Holy Stone Enterprise, and Nichidenbo also closed limit-up.
Digital and cloud-related companies continued to gain. Line Pay reached the daily limit-up shortly after the opening bell, closing at NT$320.50. E-commerce operator Momo extended its rally for a 10th consecutive session, ending limit-up at NT$426.50, more than doubling from a late-May low of NT$188.
Yang Li-kai (楊立楷), manager of the E Sun Taiwan Market Capitalization Momentum 50 ETF, said trading value has remained elevated. However, volume growth has not kept pace with the rise in the index, suggesting investors have become more cautious about pursuing further gains, according to CTEE.
He added that the ratio used to measure margin financing activity is approaching 180%, above the historical range of 150% to 160%. This points to signs of overheated market positioning.
However, Yang said Taiwan’s economic fundamentals remain stable, supported by corporate earnings and sustained visibility in AI-related demand. He added that short-term pullbacks could help ease market sentiment and create more attractive entry points, potentially offering opportunities for long-term investors.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
