Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) stock yesterday rose to its highest-ever level, tracking a global rally in chip stocks fueled by optimism about artificial intelligence (AI) and helping the TAIEX add nearly 2 percent.
The world’s top chip foundry increased 5.22 percent to close at NT$725 in Taipei trading, a record since its stock listing in 1994. The surge lifted its market capitalization to US$597 billion, one step closer to reclaiming a spot in the world’s 10 most valuable companies.
TSMC has soared more than 22 percent so far this year, helping the local benchmark TAIEX also reach a record high, ending up 1.95 percent at 19,305.31 yesterday, Taiwan Stock Exchange (TWSE) data showed.
Photo: CNA
Turnover on the main board totaled NT$485.383 billion (US$15.39 billion), the second-largest since Feb. 15, when turnover was NT$492.695 billion, while three major institutional investors were net buyers of Taiwanese equities, purchasing a net NT$44.48 billion in local stocks yesterday, TWSE data showed.
The gains in Taipei followed a strong Wall Street performance on Friday, with the S&P 500 and the tech-rich NASDAQ ending at all-time highs off continued momentum for AI-linked equities, especially Nvidia Corp, which finished with a valuation above US$2 trillion for the first time.
TSMC, the main supplier to Nvidia and Apple Inc, is considered a key beneficiary of the ongoing AI boom, with its executives expecting a return to solid growth this quarter amid signs of a demand recovery. Nvidia’s upbeat results last month further cemented investor optimism about the sector.
Separately, Japan’s benchmark Nikkei 225 index yesterday surpassed 40,000 points for the first time, with analysts predicting it could advance even further, lifted by Wall Street rallies, robust corporate earnings and optimism over AI.
Shares in Japan have also been boosted by continued easy credit policies, with the Bank of Japan pumping money into the economy to help support growth.
The Nikkei 225 index rose as high as 40,314.64, but fell back slightly. It gained 0.5 percent to close at 40,109.23, having risen for five weeks straight.
Tech darling Tokyo Electron Ltd rose 2.4 percent yesterday and has surged over 50 percent since the start of the year.
Elsewhere in Asia, Hong Kong finished flat yesterday and Shanghai closed higher ahead of the start of China’s annual legislative conclave.
At the rubber-stamp parliamentary meeting, leaders are expected to set an annual growth goal of about 5 percent for this year, SPI Asset Management managing partner Stephen Innes said.
Seoul, Mumbai, Manila and Kuala Lumpur were also up, while Sydney, Wellington, Jakarta and Singapore were down.
The solid performance of global markets provides “favorable trade winds for Asian markets as the new week begins,” Innes said.
Hope for US interest rate cuts, indications of cooling inflation and a soaring passion for AI within the tech sector have driven investor sentiment, he said.
“These factors collectively contribute to the positive tone in global markets, which is expected to bolster Asian markets,” Innes added.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
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