TAIPEI (Taiwan News) — The Taiwan stock market rallied Wednesday on improved sentiment after the US reduced tariffs on imports from Japan, Indonesia, and the Philippines — a move seen as a positive sign for US-Taiwan trade prospects.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, rose 330.75 points to close at the day’s high of 23,318.67. Turnover totaled NT$352 billion (US$12 billion), per CNA and CTEE.
TSMC rose 1.33% to finish at NT$1,145. Foxconn added 2.47% to close at NT$166, while MediaTek remained unchanged at NT$1,280.
Robotics-related stocks extended gains, following the launch of the Taiwan artificial intelligence robot alliance on Tuesday. Kye Systems hit the daily price limit, while Nexcom International and Aurotek gained 6.91% and 7.93%, respectively.
Automotive shares also performed strongly after the US cut import duties on Japanese vehicles from 25% to 15%. Hotai Motor climbed 4.03% to NT$568, and China Motor gained 5.53% to NT$55.3.
Taiwan Glass hit the daily limit of NT$18.45, ending a four-day losing streak and reaching its highest level in more than four months. The rally was fueled by rising glass fiber prices in China, driven by demand for AI server components.
Glass fiber cloth, produced by weaving fiberglass yarn, is a key component in AI server production.
Taishin 2000 High Technology Equity Fund Manager Shen Chien-hung (沈建宏) noted that the TAIEX has rebounded more than 6,000 points from its intraday low of 17,306.97 in April.
Investors are closely monitoring several external factors, Shen added, including the outcome of ongoing US tariff reviews, the potential for new tariffs on semiconductors or pharmaceuticals, the US Federal Reserve’s position on interest rates, and earnings results and guidance for the second and third quarters from major Taiwanese and US firms. Geopolitical developments in the Middle East also remain a source of uncertainty.
Shen believes the long-term trajectory of the AI industry is becoming clearer. He noted that margin financing remains at relatively low levels, suggesting market stability and a cautious investor approach.
He highlighted opportunities in sectors such as software, cybersecurity, edge computing, AI inference, high-dividend plays, optical communications, upstream semiconductor materials, low-Earth orbit satellites, robotics, and biotech.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
