TSMC Leads Taiwan Stock Market Surge Amid AI and Trade Optimism

In a strong trading session on Wednesday, Taiwan's stock market celebrated a significant rally, closing over 450 points up, driven primarily by gains in the contract chipmaker, TSMC. The Central News Agency Taiwan reported that TSMC edged closer to the milestone of New Taiwan Dollar 1,000 following an overnight upswing in U.S. tech stocks. The Taiex, the weighted index on the Taiwan Stock Exchange, concluded at 21,782.87, marking a rise of 452.73 points, or 2.12 percent.

TSMC saw a 3.10 percent hike, closing at New Taiwan Dollar 999, its highest since March 3. "TSMC and other electronics stocks attracted robust buying interest, spurred by gains in U.S. AI chipmaker Nvidia," said equity market analyst Andy Hsu, as reported by Focus Taiwan. Nvidia shares jumped 5.63 percent after announcing new AI initiatives in the Middle East, mirroring TSMC's influence on the electronics index and semiconductor sub-index.

On the AI front, Hon Hai Precision Industry Co., Quanta Computer Inc., and Giga-Byte Technology Co. posted gains, signaling strong market momentum in tech. Meanwhile, news of price hikes by South Korea's Samsung and SK Hynix propelled Nanya Technology Corp. to soar by the daily maximum of 10 percent.

Trade optimism also fueled the market's performance. Following bilateral tariff reduction discussions between the U.S. and China, sectors like shipping and old economy stocks reaped benefits. However, market stability faces threats from the unpredictable trade policies of U.S. President Donald Trump, placing a cautious outlook on the semiconductor sector, a linchpin of Taiwan's exports.

CNA noted a favorable stance from foreign institutional investors, who acquired a net New Taiwan Dollar 44.72 billion in Taiwanese shares, signaling confidence as the market navigates economic uncertainties.

(With inputs from agencies.)