TAIPEI (TVBS News) — Taiwan's main stock index rallied sharply Monday (May 12) as investors responded enthusiastically to signs of progress in high-stakes trade negotiations between the United States and China, two economic superpowers that heavily influence the island's export-driven economy. The Taiwan Stock Exchange, the primary securities trading platform in Taiwan, closed at 21,129.54 points, gaining a substantial 214.5 points. Market activity was robust with trading value reaching NT$279.062 billion (US$9.21 billion).
Taiwan Semiconductor Manufacturing Company or TSMC (台積電), the world's largest contract chipmaker and Taiwan's most valuable company, spearheaded the market rally with its shares rising NT$8 to close at NT$957 (US$31.59). This uptick elevated TSMC's total market capitalization to an impressive NT$24.84 trillion (US$820 billion) and single-handedly contributed about 72 points to the broader index gain. Fellow technology heavyweights Hon Hai (鴻海), known internationally as Foxconn, ASE Technology Holding (日月光投控), Alchip-KY (世芯-KY), and Aspeed (信驊) also posted positive results, collectively pushing the electronics sector index up by 1.17%.
Anticipation surrounding COMPUTEX 2025, Taiwan's flagship international technology trade show scheduled to open with a keynote address by NVIDIA (輝達) CEO Jensen Huang (黃仁勳) on May 19, generated heightened investor interest in companies positioned in the robotics and artificial intelligence sectors, notably Hiwin (羅昇) and Wistron (緯創). The positive sentiment extended beyond tech into traditional manufacturing, with the machinery and electronics index recording gains exceeding 2%. Several other sectors showed strength as textile, cable, glass, paper, and shipping stocks all advanced more than 1%, though food, rubber, and tourism-related equities underperformed the broader market.
Market experts credited the robust performance to unexpectedly positive developments in the U.S.-China trade relationship, with Mega International Commercial Bank Investment Services Vice General Manager Huang Kuo-wei (黃國偉) noting that the progress surpassed what investors had anticipated. In a separate analysis, financial specialist Wang Chao-li (王兆立) advised investors to closely track two critical factors: potential semiconductor tariff adjustments and fluctuations in the New Taiwan dollar's exchange rate. Many market participants remain particularly attentive to how the upcoming COMPUTEX technology exhibition might further influence stock valuations in the coming weeks. ★
