TAIPEI (Taiwan News) — Taiwan’s stock market rose Wednesday on stronger expectations of US interest rate cuts and improved market liquidity.
The Taiwan Capitalization Weighted Stock Index (TAIEX) gained 211.66 points to close at 24,370.02. Turnover expanded to NT$558 billion (US$19.6 billion), up from NT$420 billion on Tuesday, according to CNA and CTEE.
TSMC climbed 1.69% to a record NT$1,200, lifting its market capitalization above NT$30 trillion. MediaTek gained 0.74% to NT$1,370, while Foxconn rose 0.76% to NT$198.5.
Printed circuit board (PCB) makers posted another day of gains. Elite Material hit an intraday high of NT$1,215 before closing at NT$1,200, up more than 2%. Zhen Ding Technology Holding surged over 9.5%. PCBs, which contain copper wiring that connects and supports electronic circuits, are used in most electronic devices.
Battery backup unit (BBU) concept stocks also advanced. Stl Technology hit the daily limit of NT$152, a record high, while Celxpert Energy and Buima Group each rose more than 7%. BBUs, which provide power during outages, are seeing growing demand with the expansion of artificial intelligence applications.
Data from the Chicago Mercantile Exchange’s FedWatch Tool showed a 93.4% probability the US Federal Reserve will lower interest rates at its September meeting. Lower rates typically weaken a domestic currency as investors seek higher returns overseas.
Taishin Securities Investment Advisory Vice President Huang Wen-ching (黃文清) said the day’s advance reflected multiple factors, including expectations of a US rate cut, easing tariff concerns, strong AI industry fundamentals, record highs in US technology shares, and increased capital spending by major cloud service providers.
Huang added there are no signs of excessive optimism. A rapid rise in turnover, a sharp index drop, or an increase in margin financing could signal overheating, though these are not currently evident.
Mega International Investment Services Vice President Huang Kuo-wei (黃國偉) said a Fed rate cut could add liquidity and support valuations. He noted that while the TAIEX could challenge and surpass its record high in the near term, sustaining momentum will depend on tariff effects and market fundamentals in the second half of the year.
This information is not intended as personalized financial advice. Investors should conduct their own research before making investment decisions.
