TAIPEI (Taiwan News) — Taiwan shares closed slightly lower Wednesday amid market volatility, as mixed investor sentiment and concerns over US chip tariffs weighed on performance.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, dropped 3.09 points to close at 20,543.40. Turnover totaled NT$248 billion (US$8.2 billion), according to CNA and CTEE.
TSMC, which had been in positive territory for most of the day, reversed course in late trading with over 7,000 lots sold off, closing down 1.08% at NT$918 (US$30). Mediatek gained 1.18% to NT$1,290, and Foxconn added 0.69% to NT$146.
The US Department of Commerce confirmed plans by US President Donald Trump to lift the export ban on AI chips, fueling gains in the AI sector. Small- and mid-cap AI stocks outperformed the broader market.
Shares linked to Apple’s anticipated foldable phone launch saw robust growth, led by Shin Zu Shing which gained 7.3% to NT$191. Other suppliers, such as Jarllytec and Fositek, also advanced more than 3%.
The Taiwan dollar strengthened on expectations of a vibrant summer travel season, lifting tourism-related stocks. Tsg Star Travel and Life Travel & Tourist Service both hit the daily limit amid bullish sentiment.
Airline stocks, including Eva Air, StarLux, China Airlines, and Taiwan Tiger Air, all finished higher, reflecting renewed optimism in the travel sector. Cultural and creative stocks like Astro and Kuang Hong Arts Management also hit their price ceilings.
Momentum from the “520 rally” persisted, with military-related stocks seeing broad gains. AirAsia hit its daily limit, while National Aerospace Fasteners climbed more than 3%.
The “520 rally” refers to a recurring market rise around Taiwan’s presidential inauguration on May 20, often driven by policy optimism and increased investor enthusiasm under new leadership. Historically, this trend reflects confidence in economic stimulus measures initiated by the incoming administration.
Cathay Securities Investment analyst Tsai Ming-han (蔡明翰) said attention remains fixed on the pending US chip tariff decision, which continues to exert downward pressure on Taiwan’s market. He noted that while US markets have rebounded from early April shocks, Taiwan lags due to persistent tariff concerns.
Tsai believes the worst of the US tariff impact may be over and expects easing pressure as US-China negotiations resume. He recommends a mildly bullish short-term outlook, though he advises investors to maintain liquidity in case of renewed volatility.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
