TAIEX Jumps 1,050.22 Points to 42,711.92 as Chip Stocks Rise
Key Facts
Taiwan’s TAIEX rose 1,050.22 points, or 2.52%, to close at 42,711.92 on Tuesday, Nov. 10, extending its advance after a 4.94% gain in the previous session, according to the Central News Agency of Taiwan. The gains came as a rebound in U.S. technology stocks spilled over into the local market, with chip companies accounting for a significant part of the session’s advance. An analyst pointed to gains in the Nasdaq and the Philadelphia Semiconductor Index in Monday’s session, despite a decline in Nvidia shares. In Taiwan, the electronics sector led the market, supported by TSMC, its largest component by weight. The moves followed a sharp earlier retreat in the index amid concerns related to developments in artificial intelligence.
Wall Street’s performance on Nov. 9 supported Taiwanese stocks, with the Nasdaq up 2.74% and the Philadelphia Semiconductor Index rising 6.85%, according to the analyst cited by the Central News Agency of Taiwan. But the broad rally in the chip sector did not prevent Nvidia shares from falling 4.27% in the same session, diverging from the broader semiconductor index. The Associated Press also reported that the Nasdaq Composite rose 2.7% on Monday, while Nvidia shares fell 4.3%. The figures reflect a slight difference in the index’s reported gain between the two sources, though both agree on the direction of the move. TAIEX rose the following day, with its gains coming after a rebound in the U.S. technology sector despite Nvidia’s decline.
Taiwan’s electronics sector rose 3.06% on Nov. 10, led by TSMC, which accounts for more than 40% of total market capitalization, according to coverage by the Central News Agency of Taiwan. The company’s shares gained 2.24% to 2,285 Taiwan dollars, contributing about 400 points to TAIEX’s advance. That highlights the company’s influence on the index, as its share-price gain accounted for a large part of the market’s rise in the session. The local gains came as U.S. stocks linked to chips posted mixed performance the previous day. The U.S. stock data cited in the coverage were not closing prices for TSMC’s U.S.-listed shares, but the movement in the company’s shares on the Taiwan Stock Exchange.
The Nov. 10 advance followed a strong rebound in the previous session, when TAIEX rose 1,960.06 points, or 4.94%, to 41,661.70 on Nov. 9, its second-largest daily point gain, according to the Central News Agency of Taiwan. That came after the National Financial Stabilization Fund authorized intervention in the market. Before the rebound, the index had fallen about 10,267 points, or 20.55%, from its intraday high of 49,968.92 recorded on Oct. 6. The coverage linked the decline to concerns about developments in artificial intelligence. Reuters reported that U.S. stocks rose after the previous week’s decline, amid concerns that a Congress controlled by Democrats could slow the buildout of AI data centers.
In energy markets, Brent crude fell 5.8% to $92.57 a barrel on Nov. 9, according to the Associated Press, forming part of the backdrop to the U.S. session that preceded TAIEX’s gains. An analyst cited by the Central News Agency of Taiwan said investors should watch U.S. consumer price index data due Tuesday U.S. time for signals on the Federal Reserve’s next move. Market attention was thus focused on U.S. inflation data after stocks rebounded in the previous session. Separately, Nvidia said there was "no reason to believe" national security or company secrets had been compromised, and announced that the investigation would cover the available information. The company’s shares had fallen in the Nov. 9 session, alongside gains in U.S. technology indexes.