On Tuesday, Taiwan's benchmark Taiex surged to an intraday peak of 48,601.53, buoyed by significant gains in the technology sector following a rally on Wall Street fueled by positive developments regarding Meta's AI initiatives. Key semiconductor stocks, including TSMC, which rose 0.40%, MediaTek, which gained 7.88%, and Delta Electronics, which increased by 2.67%, contributed to this milestone.
These companies are among the largest by market capitalization on the Taiex index, which is heavily influenced by the tech sector, accounting for approximately 88% of the index.
The Taiex's new high comes just three months after it previously set a record in June, highlighting the robust growth of Taiwanese stocks this year, largely driven by the AI boom and Taiwan's critical role in the global semiconductor supply chain. Standard Chartered noted that Taiwan produces over 90% of the world's advanced semiconductor chips, particularly those at 7 nanometers and smaller.
Furthermore, HSBC data indicates that Taiwan has surpassed Canada to become the sixth-largest stock market globally. Investors are also anticipating Taiwan's August export orders, expected to show resilience with a year-over-year growth of 63.0%, reflecting sustained demand related to AI technologies