TAIPEI (Taiwan News) — Taiwan’s stock market closed lower on Wednesday as early gains driven by traditional sectors faded, with major technology stocks reversing course and dragging the index down.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed down 94.3 points at 23289.75. Turnover totaled NT$370 billion (US$11.3 billion), per CNA and CTEE.
In the morning session, gains in sectors such as plastics, biotechnology, and shipping — coupled with a rebound in financial stocks — pushed the index to an intraday high of 23,528.61. This marked an increase of 144.56 points and a new peak for the Year of the Snake.
However, as the session progressed, selling pressure in the semiconductor and electronics sectors led to a market downturn. Even shipping stocks, which saw strong early gains, ended the day with reduced momentum.
Shipping stocks react to Red Sea uncertainty and positive financial results
The ongoing Israel-Hamas ceasefire negotiations have introduced fresh uncertainties regarding the resolution of the Red Sea crisis, a key factor affecting global shipping rates. This development sparked renewed investor interest in Taiwan’s leading shipping firms—Evergreen Marine, Yang Ming Marine Transport, and Wan Hai Lines, according to CTEE.
Boosted by the geopolitical situation and strong January revenue reports, the three stocks experienced early trading gains of over 2%. Evergreen, Yang Ming, and Wan Hai reported robust year-over-year and month-over-month revenue growth for January, with figures rebounding to NT$42 billion, NT$17.5 billion, and NT$14.5 billion, respectively—the highest levels in three months.
Humanoid robot stocks surge
Anticipation for Nvidia's upcoming GPU Technology Conference (GTC) has fueled a surge in robot-related stocks. Hiwin and Hota, having been recognized by Morgan Stanley as among the world's top 100 publicly traded humanoid robot companies, have seen significant gains.
Nvidia's earnings report, due Feb. 26, and its annual GTC are highly anticipated. Investors expect CEO Jensen Huang (黃仁勳) to provide updates on the GB200 and GB300 AI servers, as well as discuss progress in humanoid robotics.
Tech stocks decline; optical and petrochemical sectors rise
TSMC dropped NT$10 (US 30 cents) to close at NT$1,100. MediaTek and Foxconn both fell more than 1%.
The silicon photonics sector also saw sharp declines, with LuxNet hitting the daily limit-down. Elite Advanced Laser and LandMark Optoelectronics lost about 7%, Fiber Optic Communications slipped 4%, and Browave and GCS Holdings also posted losses.
Meanwhile, small and mid-cap stocks remained highly active, with themes such as robotic vision and augmented reality glasses driving interest. Optical stocks surged, with Asia Optical extending its strong performance, while Calin and Kinko Optical jumped over 8%.
The petrochemical sector rebounded strongly, led by Formosa Plastics, which surged 4.85%, and Formosa Petrochemical, which rose more than 3.7%. Other major players, including Nan Ya Plastics, Usi, China General Plastics, and Asia Polymer, gained over 2%.
Biotech stocks also saw notable gains, with PharmaEssentia soaring more than 7%, while Bora Pharmaceuticals and Tanvex Biopharma climbed around 3%.
Market uncertainty over US policy
Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) noted that market uncertainty surrounding US President Donald Trump’s potential policies—particularly regarding tariffs on electronics—remains a key concern, especially for TSMC. Investors are awaiting insights from TSMC’s upcoming board meeting and further clarity on Trump’s trade stance.
While near-term developments have been mixed, Huang emphasized that US policies will play a critical role in shaping market sentiment for the first half of the year. He expects a more pronounced bullish trend once uncertainties are resolved.
Looking ahead, Huang suggested investors focus on long-term growth sectors, including AI, robotics, graphics cards, and silicon photonics. He advised conducting in-depth financial analysis and assessing future growth potential when selecting stocks.
