TSMC Drives Taiex to Record Highs Amid U.S. Rate Cut Hopes

Taiwan's Taiex index hit a new high as TSMC shares soared following U.S. stock market gains and potential Fed rate cuts. The surge was fueled by liquidity and tech optimism, with significant contributions from large-cap stocks, notably TSMC, amid growing interest in artificial intelligence and semiconductor advancements.

On Tuesday, Taiwan's stock market reached unprecedented heights with a record finish for the Taiex index, primarily driven by impressive gains in Taiwan Semiconductor Manufacturing Co. (TSMC) shares. This upward trajectory was ignited by overnight rallies in major U.S. indices, buoyed by optimism for potential interest rate reductions by the U.S. Federal Reserve.

According to reports from Focus Taiwan, the Taiex index closed 272.48 points higher, ending at an impressive 25,629.64. Kevin Su, an analyst at Hua Nan Securities, attributed the index's rise to the appreciating Taiwan dollar and significant liquidity inflow. These factors channeled investments predominantly into large-cap technology stocks, with TSMC at the forefront, climbing 2.40% to reach a record NT$1,280.00.

Investor enthusiasm extended beyond TSMC, as MediaTek Inc. announced its upcoming chip using TSMC's 2nm process, increasing shares by 3.37%. Additionally, players in the semiconductor sector like ASE Technology and Nanya Technology experienced notable gains. Meanwhile, the property sector saw strong buying interest following relaxed mortgage rules, contributing to the positive market sentiment.

(With inputs from agencies.)