TAIPEI (TVBS News) — Taiwan's benchmark stock index mounted a decisive comeback Tuesday (June 24) as investors rushed back into the market after Monday's selloff. The Taiwan Stock Exchange (台灣證券交易所), the island's primary securities trading platform, leapt 269.46 points at the opening bell to 22,001.48 points, pushing past the psychologically important 22,000-point threshold. As trading progressed, the momentum accelerated with gains expanding beyond 300 points, effectively erasing the previous day's losses. The robust rally represented a sharp reversal from Monday's session, when the weighted index had tumbled 313.72 points, or 1.42%, to close at 21,732.02 points.
Market heavyweights led the charge upward, with semiconductor and electronics manufacturers — the backbone of Taiwan's export-driven economy — posting significant gains. Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's largest contract chipmaker and Taiwan's most valuable company, advanced NT$25 (approximately US$0.85) to NT$1,045 (US$35.41). Chip designer MediaTek (聯發科) rose NT$20 (US$0.68) to NT$1,275 (US$43.21), while electronics manufacturing giant Foxconn (鴻海), a key Apple supplier, added NT$3.5 (US$0.12) to NT$159.5 (US$5.41). One notable exception was United Microelectronics Corporation (UMC, 聯電), which declined 1.81% to NT$43.4 (US$1.47) as it traded ex-dividend, with plans to distribute a cash dividend of approximately NT$2.85 (US$0.10) per share.
The positive momentum in Taipei mirrored overnight gains in U.S. markets, which often set the tone for Asian trading. Wall Street's major indices all closed higher in Monday's session, providing a favorable backdrop for Taiwan's tech-heavy market. The Dow Jones Industrial Average climbed 374.96 points, or 0.89%, to finish at 42,581.78, while the technology-focused Nasdaq Composite Index advanced 183.57 points, or 0.94%, to 19,630.98. The broader S&P 500 Index rose 57.33 points, or 0.96%, reaching 6,025.17. Particularly relevant for Taiwan's semiconductor-dominated market, the Philadelphia Semiconductor Index — closely watched by Taiwan investors as a barometer for global chip demand — increased 32.83 points, or 0.63%, to 5,244.30.
Analysts attributed the market's buoyant performance to two primary factors beyond the technical rebound. Geopolitical developments sparked investor confidence as the United States increased its diplomatic involvement in an ongoing international conflict, raising hopes for a swifter resolution that could stabilize global markets. Simultaneously, monetary policy signals from the U.S. Federal Reserve contributed to the positive sentiment, as Fed Vice Chair Michelle Bowman adopted an unexpectedly accommodative tone in recent comments, indicating the central bank might implement an interest rate reduction as soon as July — earlier than many market participants had anticipated. ◼
