Taipei: Shares in Taiwan surged more than 1,200 points and closed above the 45,000-point mark Monday on an announcement by the United States and Iran that they have reached a peace deal slated to be signed Friday, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 1,227.95 points, or 2.78 percent, at 45,396.99 after moving between 44,447.87 and 45,483.63. Turnover totaled NT$1.06 trillion (US$33.46 billion).
According to Focus Taiwan, the U.S.-Iran deal led to a decline in crude oil prices, which could ease global inflation concerns. Brent crude, the global benchmark, fell 4.3 percent at one point Monday, with West Texas Intermediate down 4.9 percent. Concord Securities analyst Kerry Huang noted that regional equity markets, Taiwan included, responded positively to the news, with significant buying activity, particularly in the electronics sector amid the ongoing AI boom.
Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), a major player in the local market, rose 2.81 percent to NT$2,375.00, contributing approximately 520 points to the Taiex's rise and boosting the electronics index by 2.97 percent. Smartphone IC designer MediaTek Inc. saw a 6.94 percent increase to NT$4,470.00, and United Microelectronics Corp. gained 5.99 percent to close at NT$141.50.
Huang highlighted that buying also expanded to passive electronics component makers, adding momentum to the tech sector. Yageo Corp., a leading multi-layer ceramic capacitor manufacturer, and Kaimei Electronic Corp., another capacitor supplier, both jumped 10 percent to close at NT$940.00 and NT$189.50, respectively.
In the AI server segment, iPhone assembler and AI server maker Hon Hai Precision Industry Co. gained 2.69 percent to close at NT$267.50, while Quanta Computer Inc. fell 0.54 percent to end at NT$370.00. Despite falling crude prices, select petrochemical stocks continued to attract strong interest, driven by investor optimism about their potential in electronics material production for the AI era. The petrochemical index rose 3.81 percent, with Nan Ya Plastics Corp. soaring 10 percent to NT$117.00, and affiliates Formosa Plastics Corp. and Formosa Chemicals and Fibre Corp. increasing by 4.42 percent and 5.74 percent, respectively.
Boosted by government investments in electricity grid networks, Shihlin Electric and Engineering Corp. added 2.50 percent to NT$225.50, and Teco Electric and Machinery Co. rose 3.10 percent to NT$73.20. The financial sector also saw gains, driven by expectations of higher cash dividend payouts, with Fubon Financial Holding Co. gaining 4.51 percent to NT$127.50 and Cathay Financial Holding Co. rising 3.48 percent to NT$104.00.
Huang advised investors to remain attentive to the U.S. Federal Reserve's statements later this week for insights into its interest rate policy. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$46.53 billion of shares on the main board Monday.