The TAIEX, Taiwan’s benchmark stock index, climbed 152 points, or 0.4%, to 42,823 in Monday morning trade, rebounding from the previous session’s slump and recovering from Friday’s close at the lowest level since May 22. The rebound was driven primarily by gains in TSMC shares. TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization, advanced 2.2% after tumbling 7.3% in the prior session, as the company projected robust demand for AI chips and confirmed plans to invest an additional $100 billion to expand its Arizona facilities. Hon Hai Precision Industry also rose, adding 0.9%.
By contrast, the broader electronic technology sector slipped 0.1%, with MediaTek and Delta Electronics down 0.5% and 0.6%, respectively. Upside in the overall market was further constrained by rising oil prices following US strikes on Iran, which stoked inflation concerns and reinforced expectations of additional interest rate hikes. A decline on Wall Street on Friday, amid renewed selling in tech stocks, also capped local gains.
