The TAIEX, Taiwan’s benchmark stock index, jumped 1,960 points, or 4.9%, to close at 42,060 on Monday. The advance marked a sharp rebound from Friday’s intraday low, the weakest level since April 30, and snapped a seven-session losing streak. The turnaround followed moves by Taiwan’s Ministry of Finance and market regulators to tighten short-selling rules, alongside signals that authorities were prepared to deploy the NT$500 billion stock stabilization fund.
Sentiment was further buoyed by a positive tone in US stock futures, with nearly all subsectors finishing in positive territory. Gains were led by electronic technology shares, which climbed 6.8%. TSMC, the world’s largest contract chipmaker and a stock that represents more than 40% of the TAIEX’s total market value, rose 4.7%.
Other major technology names also advanced strongly, including MediaTek (up 9.9%), Hon Hai Precision (up 6.5%), and Delta Electronics (up 10.0%). Easing oil prices contributed to the improved mood by tempering concerns over inflation and further interest rate hikes. Nonetheless, traders remained cautious ahead of key data releases later this week, including China’s trade figures and US inflation reports.
