Taipei:Shares in Taiwan surged over 1,200 points on Monday, achieving a record high, as AI-related stocks saw increased buying. This boost followed a rally in U.S. tech stocks on Friday, driven by reduced concerns over a Federal Reserve rate hike due to weaker-than-expected U.S. jobs data for August.

According to Focus Taiwan, the Taiex, which is the Taiwan Stock Exchange's benchmark index, climbed 1,236.30 points, or 2.55 percent, concluding the day at 49,712.04. The index fluctuated between 48,574.95 and 49,770.66, with a turnover of NT$1.15 trillion (US$36.11 billion).

The market opened on a higher note and maintained its upward trajectory throughout the day. The electronics index saw a 3.00 percent increase, mirroring the tech-heavy Nasdaq's 1.19 percent gain from the previous Friday. Analyst Adam Lin from Moore Securities Investment Consulting noted that the disappointing August nonfarm payroll report led investors to anticipate a lowered probability of a Fed rate hike in October, reducing from 64.2 percent to 22.7 percent.

The reduced likelihood of an interest rate increase proved beneficial for tech stocks, prompting many investors who had previously been cautious to return to the market and invest in AI-related stocks, boosting turnover amid the ongoing AI boom.

Taiwan Semiconductor Manufacturing Co. (TSMC), which holds over 40 percent of the market's total value, saw its stock rise 3.00 percent to a record NT$2,575.00, contributing approximately 600 points to the Taiex's rise. Other notable semiconductor companies also experienced gains, with MediaTek Inc. up 4.34 percent and ASE Technology Holding Co. rising 4.07 percent.

In the broader tech sector, Elite Material Co. achieved the maximum daily increase of 10 percent, while Delta Electronics Inc. rose 8.86 percent. Hon Hai Precision Industry Co. also saw a 1.20 percent increase.

Nontech stocks were mostly subdued, though the petrochemical index rose 4.30 percent, driven by Nan Ya Plastics Corp., which surged 10 percent. Conversely, the shipping sector saw declines, with Evergreen Marine Corp. and Wan Hai Lines Ltd. posting losses.

In the financial sector, Fubon Financial Holding Co. increased by 1.00 percent, whereas Cathay Financial Holding Co. remained unchanged. Analyst Lin remarked that the Taiex is nearing the 50,000-point mark and could reach this milestone should U.S. market gains persist.

Foreign institutional investors were net buyers on the main board, purchasing NT$71.897 billion worth of shares, according to the Taiwan Stock Exchange.