Taiwan Stock Market Soars as TSMC Breaks NT$1,000 Barrier
Shares in Taiwan saw a strong rebound on Monday, driven by a surge in the electronics sector, particularly Taiwan Semiconductor Manufacturing Co. (TSMC), which helped the broader market recover from its previous week’s downturn. The rally in tech stocks was fueled by positive movements in U.S. markets, particularly the technology-heavy Nasdaq index, which climbed 0.83% on Friday. This upward momentum was mirrored in Taiwan, where TSMC’s comeback played a pivotal role in pushing the market past key resistance levels.
The Taiwan Stock Exchange’s benchmark weighted index, the Taiex, closed 474.43 points higher, a 2.13% increase, at 22,736.93 points. The index fluctuated between 22,456.50 and 22,802.53 points throughout the session, with total turnover reaching NT$310.67 billion (approximately US$9.52 billion).
TSMC Leads the Charge with Strong Gains
TSMC, the world’s largest contract chipmaker, rose 3.92% to reach NT$1,035.00, marking a significant rebound. The stock’s positive performance was a major driver of the market’s recovery, contributing over 310 points to the Taiex’s rise. This comeback followed a 1.92% increase in TSMC’s American Depositary Receipts (ADRs) on Friday.
The surge in TSMC’s stock lifted the electronics index by 2.73%, with the semiconductor sub-index climbing 3.52%. Other semiconductor stocks, such as MediaTek and United Microelectronics Corporation (UMC), also performed well, reflecting a broad interest in Taiwan’s tech sector.
Other Electronics Stocks and Sector Performance
- MediaTek Inc., a leading smartphone IC designer, saw its stock climb 4.38% to close at NT$1,310.00.
- UMC gained 2.41%, closing at NT$44.60.
- ASE Technology Holding Co., a key player in IC packaging and testing services, rose 1.98% to NT$154.50.
- Delta Electronics Inc., known for its power management solutions, gained 1.97%, closing at NT$288.50.
- Yageo Corp., the third-largest multi-layer ceramic capacitor (MLCC) supplier in the world, saw a 1.17% rise, finishing at NT$520.00.
Concerns Over U.S. Tariff Threats Mitigated by Rebound
The market had faced significant pressure last week, falling by 2.80% due to concerns over U.S. President-elect Donald Trump’s threat to impose tariffs on goods from Canada, Mexico, and China. However, Monday’s rally was fueled by optimism after the U.S. retail sales and the non-farm payroll reports showed strength, signaling resilience in the global economy. Analysts believe that the concerns over tariffs were already priced in, helping to spur the recovery.
Additionally, the fall in U.S. Treasury yields was viewed positively, making tech stocks more attractive to investors. According to Alex Huang, an analyst from Mega International Investment Services Corp., the rebound is expected to continue if the Taiex crosses its 20-day moving average (22,894 points) in the coming days, indicating a healthier market outlook.
Old Economy Stocks Struggle Amid China Demand Concerns
While the tech sector surged, old economy stocks faced challenges. Formosa Petrochemical Corp. saw a 1.22% decline to NT$40.40, while Formosa Chemicals & Fibre Corp. fell by 0.44% to NT$33.70. Formosa Plastics Corp. dropped 0.36% to NT$41.20, amid lingering concerns over weak demand from China.
In the steel industry, a global supply glut continued to hurt stocks, with Tung Ho Steel Corp. sliding 0.28% and Ta Chen Stainless Pipe Co. falling 1.01%. China Steel Corp., however, remained resilient, closing unchanged at NT$21.20.
Shipping Stocks Benefit from Middle East Tensions
The ongoing Israel-Hezbollah conflict led to a rise in shipping stocks, as international shippers adjusted their routes to avoid risks in the Middle East. This is expected to push up freight rates. Evergreen Marine Corp., Taiwan’s largest container cargo shipper, rose 1.84% to NT$221.00, while Yang Ming Marine Transport Corp. gained 1.50%, closing at NT$74.30.
Financial Sector Shows Strong Growth
The financial sector also performed well, driven by improving bottom-line growth. The sector gained 1.54%, with Cathay Financial Holding Co. up 2.89% to NT$67.60 and Fubon Financial Holding Co. increasing 1.82% to NT$89.60.
Table: Taiwan Stock Performance by Sector (December 1, 2024)
| Company Name | Sector | Stock Price (NT$) | Price Change (%) |
|---|---|---|---|
| TSMC | Semiconductor | 1,035.00 | +3.92% |
| MediaTek | Semiconductor | 1,310.00 | +4.38% |
| UMC | Semiconductor | 44.60 | +2.41% |
| ASE Technology | Electronics | 154.50 | +1.98% |
| Delta Electronics | Electronics | 288.50 | +1.97% |
| Yageo | Electronics | 520.00 | +1.17% |
| Evergreen Marine Corp. | Shipping | 221.00 | +1.84% |
| Fubon Financial | Financials | 89.60 | +1.82% |
| Formosa Petrochemical Corp. | Petrochemicals | 40.40 | -1.22% |
FAQs: Taiwan Stock Market and TSMC’s Performance
- What caused the rebound in Taiwan’s stock market?
- The rebound was primarily driven by a surge in Taiwan Semiconductor Manufacturing Co. (TSMC) and other large-cap tech stocks, spurred by strong U.S. market performance and optimism regarding tech stocks.
- How did TSMC contribute to the market’s recovery?
- TSMC’s stock rose by 3.92%, contributing about 310 points to the Taiex’s rise. The strong performance of TSMC lifted the electronics index and semiconductor stocks.
- Which sectors performed well on December 1, 2024?
- The electronics and financial sectors showed strong growth, with notable gains in semiconductor stocks like MediaTek and UMC, and financials such as Cathay Financial and Fubon Financial.
- Why did shipping stocks outperform other old economy sectors?
- Tensions in the Middle East led international shippers to adjust their routes, increasing freight rates and benefiting shipping stocks like Evergreen Marine.
- What should investors watch in the coming days?
- Investors should monitor when the Taiex returns to its 20-day moving average, as a significant upward movement could signal a more robust technical outlook for the market.
