Taipei: Shares in Taiwan saw a significant increase on Tuesday, climbing by more than 300 points as buying activity was sparked by an overnight rally in the United States. The rally was driven by the White House’s announcement of exemptions on tariffs for electronic items such as smartphones and computers, dealers reported.
According to Focus Taiwan, the Taiex, which is the weighted index on the Taiwan Stock Exchange (TWSE), closed up 344.58 points, or 1.77 percent, at 19,857.67. The index fluctuated between 19,576.15 and 19,895.43 throughout the day, with a turnover totaling NT$295.94 billion (US$9.12 billion).
“Today’s rebound largely reflected the gains on the U.S. markets overnight on tariff exemptions for electronics products,” noted Alex Huang, an analyst at Mega International Investment Services. This was in response to a 2.21 percent rise in Apple Inc. shares overnight. The U.S. government announced late Friday that electronic imports, including computers, phones, and semiconductors, would be exempt from reciprocal tariffs. However, U.S. Commerce Secretary Howard Lutnick stated on Sunday that this exemption is “not permanent.”
Taiwanese manufacturers, many of which are part of the Apple supply chain, mirrored their American counterparts by staging a rally, thereby boosting the broader market. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), a major supplier to Apple, rose 1.39 percent to close at NT$877.00. TSMC, the stock with the most significant weight on the index, contributed approximately 95 points to the Taiex’s rise and helped lift the electronics index by 1.65 percent.
In the semiconductor sector, ASE Technology Holding Co., a provider of IC packaging and testing services, gained 2.26 percent to end at NT$135.50. Conversely, smartphone IC designer MediaTek Inc. saw a decline of 1.07 percent, closing at NT$1,385.00. Additionally, iPhone assembler and AI developer Hon Hai Precision Industry Co. increased by 0.72 percent to close at NT$139.50, while AI server supplier Wistron Corp. rose 5.34 percent to end at NT$10.50.
President Donald Trump indicated that his administration is considering temporary exemptions from the 25 percent tariffs on the auto industry, aiming to provide car companies with more time to transition manufacturing to the U.S. This potential move has led to increased investor optimism, with many believing that the president may offer future flexibility and reprieves, according to Huang.
The anticipation of tariff exemptions also attracted attention to old economy stocks, with Formosa Petrochemical Corp. rising 6.13 percent to close at NT$37.25 and Formosa Plastics Corp. increasing by 3.39 percent to end at NT$36.55. In the electric machinery sector, Rexon Industrial Corp. soared 10 percent to close at NT$29.95, while Fortune Electric Co. surged 9.27 percent to end at NT$418.50, buoyed by optimism regarding government investments in strengthening Taiwan’s electricity grid networks.
The financial sector experienced a 1.43 percent rise, with Cathay Financial Holding Co. climbing 2.75 percent to close at NT$56.00 and Fubon Financial Holding Co. gaining 1.98 percent to end at NT$82.50.
Despite the gains in the Taiex, turnover remained low as market sentiment stayed cautious concerning Trump’s impending tariff actions on semiconductors. Huang expressed that he expects the index to be capped at 20,000 points in the short term. Meanwhile, the Taiwan Stock Exchange (TWSE) reported that foreign institutional investors sold a net NT$490 million worth of shares on the main board on Tuesday.