Asian semiconductor stocks surged following developments in U.S.-Taiwan trade relations, propelling Taiwan's Taiex to a new record of 31,408.7 and South Korea's KOSPI to a fresh high. The rally reflects growing investor confidence in regional tech supply chains.
- Taiex closed at 31,408.7, a new record high, up 1.94% on January 16, 2026.
- South Korea's KOSPI reached a record closing level on the same day.
- Semiconductor stocks led gains in both Taiwan and South Korea.
- U.S.-Taiwan trade discussions boosted investor sentiment on technology supply chains.
- Tech firms and components suppliers saw significant trading volume increases.
- Market reactions signal strengthening confidence in Asia’s role in global chip production.
Asian equity markets gained strength on January 16, 2026, as semiconductor stocks led gains across the region. Taiwan's benchmark Taiex rose 1.94%, closing at 31,408.7—its highest level ever. This marked a significant milestone for the island’s tech-dominated index, driven by optimism surrounding new trade cooperation between the United States and Taiwan. South Korea’s KOSPI also reached a record closing level, reflecting broad-based momentum in the region's technology sector. The rally was fueled by market expectations of enhanced technology exports and joint research initiatives between the U.S. and Taiwan. Investors interpreted recent bilateral discussions as a signal of deeper economic integration, particularly in advanced chip manufacturing. Semiconductor firms, which account for more than 40% of the Taiex's weight, saw particularly strong demand as traders priced in long-term supply chain stability. The gains extended beyond Taiwan and South Korea. Major tech components suppliers in the region, including those specializing in logic and memory chips, posted double-digit percentage increases in trading volume. The combined performance of the Taiex and KOSPI underscored investor confidence in Asia’s central role in global semiconductor production, especially amid ongoing U.S. efforts to diversify supply chains. The developments have implications for global investors, multinational tech firms, and semiconductor equipment manufacturers. Market participants are now monitoring upcoming trade policy announcements for further signs of coordinated technology cooperation between the U.S. and key Asian producers.