Taiwan Equities Extend Rally as Tech Strength Drives Index Higher

The Taiwan Stock Exchange (TSE) continued its aggressive ascent, closing its seventh straight session in the green. The index has climbed nearly 4,200 points, representing a 12.6% increase over the last seven trading days, to settle just above the 36,720 level. The market is tipped to open higher on Thursday despite a murky global forecast characterized by a tug-of-war between profit-taking and sector-specific support. This regional momentum mirrors a broader global appetite for technology, specifically following record highs for the NASDAQ and S&P 500. The NASDAQ's surge was largely attributed to strength among chipmakers, highlighted by a multi-year strategic partnership between Broadcom and Meta, which has provided a tailwind for the broader semiconductor sector. In Taiwan, semiconductor giants led the charge. United Microelectronics Corporation (UMC) soared 4.02%, while MediaTek rallied 4.07%. Taiwan Semiconductor Manufacturing Company (TSMC) also posted a gain of 1.22%. Other notable performers included Largan Precision, which surged 5.62%, and Delta Electronics, which jumped 2.00%. However, the rally was not universal across all sectors. Formosa Plastics saw a significant decline of 3.68%, while Asia Cement and Nan Ya Plastics both dipped 0.56%. Financial stocks showed mixed results, with Mega Financial rising 0.38% while CTBC Financial dipped 0.16%. Beyond equities, traders are closely monitoring geopolitical tensions in the Middle East. While optimism regarding U.S.-Iran peace talks persists, the ongoing U.S. blockade of Iranian ports has kept supply concerns alive. This tension contributed to West Texas Intermediate (WTI) crude oil edging higher to $91.64 per barrel.