TAIPEI (Taiwan News) — Taiwan's stock market gained on Tuesday, boosted by strong performances in the AI and semiconductor sectors, following a rally in US stocks despite ongoing concerns over US President Trump's trade policies.
The Taiwan Stock Exchange Capitalization Weighted Stock Index or TAIEX closed up 131.92 points at 23384.05, compared to a loss of 226.13 Monday. Turnover totaled NT$346.6 billion (US$10.6 billion), per CNA.
The electronics sector index gained 0.69%, while financial stocks saw a modest increase of 0.17%. Among traditional industries, biotech stocks led the gains with a 1.04% rise, shipping rose 0.32%, while construction and steel sectors declined by 0.47% and 0.33%, respectively.
Leading tech stocks provided strong support for the market. TSMC closed up 0.45% at NT$1,110 (US$33.50). Investors are awaiting the outcome of TSMC’s board meeting on Wednesday, as the stock fluctuated around the flatline throughout the session, according to CTEE reports.
Foxconn rose 2.87% to NT$179 after reporting strong January revenue. MediaTek gained 2.03%, closing at NT$1,510.
Boosted by China’s smartphone subsidies and clients stocking up ahead of potential tariff impacts, MediaTek’s January revenue surged past NT$50 billion. The stock jumped more than 3% intraday to NT$1,530 before closing at NT$1,510.
Foreign investors remain optimistic about MediaTek, with several firms maintaining “buy” ratings and increasing their target prices. American investment bank Citigroup sees MediaTek as a key beneficiary of Chinese AI DeepSeek's trend, giving it a “buy” rating and setting a target price of NT$1,800, representing a potential 17.6% upside from Tuesday’s high.
Stocks in the motherboard and graphics card sectors rose on optimism surrounding Nvidia’s new product launch. ASRock hit the daily limit, closing at NT$251, while Micro-Star International rose 2.62%. Leadtek gained 2.4%, and Gigabyte increased by 0.98%.
Institutional investors noted that over 70% of US companies reporting so far have exceeded earnings expectations. However, concerns over Trump's tariffs, China's countermeasures, and TSMC’s upcoming board meeting in the US are contributing to market volatility.
As investors search for leading sectors, sector rotation is expected to accelerate, making it more difficult to navigate market movements. Analysts predict the market will remain volatile in the short term, with stocks moving within a narrow range.
Steel sector rally on Trump tariff
Following a surge in steel stocks on Monday due to Trump's 25% tariff on imported steel and aluminum, the sector showed mixed performance on Tuesday. Companies with a local presence in the US, such as Ta Chen Stainless Pipe and Brighton-Best International, along with copper-related stock First Copper Technology, continued to rise, while others experienced declines.
Analysts noted that most steel used by US automakers is sourced domestically. US steel producers have not significantly increased production but instead raised prices.
The tariffs are expected to drive up costs and prices in the US, benefiting companies like Ta Chen Stainless Pipe and Brighton-Best International. However, analysts warn that the exact timeline for the tariff implementation remains uncertain, and potential policy adjustments could occur.
Additionally, analysts pointed out that the tariffs will have a limited impact on raw material demand. The recent surge in Taiwan’s steel stocks may reflect optimism regarding a potential end to the Russia-Ukraine conflict, which could lead to reconstruction efforts in Ukraine.
However, with global iron ore prices remaining stable, market expectations may increase short-term risks.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
