- The Taiwan Weighted Index (TWSE: TAIEX) closed up 0.48% at 45,557.31 points, marking a record high for the third consecutive trading day, with preliminary trading volume narrowing to 1.6075 trillion New Taiwan dollars.
- The opening of the Taipei International Computer Show (Computex) boosted industry sentiment, with TSMC (2330: TW) and traditional AI server concept stocks leading the gains, as the market showed a high-level oscillation pattern.
- The three major U.S. stock indices closed slightly higher the previous trading day, buoyed by the release of new AI edge computing chips and marginal easing in geopolitical negotiations, supporting the valuation of Asian tech stocks.
Taipei International Computer Show Boosts Tech Stock Valuations
The Taiwan stock market continued its upward trajectory today, mainly benefiting from the scale effect of the 2026 Taipei International Computer Show. This year's exhibition focuses on AI collaborative operations as its core theme, with a deep focus on vertical fields such as AI computing, humanoid robots, smart mobility, and next-generation advanced manufacturing. TSMC (2330: TW), which holds a core position in the global semiconductor supply chain, continues to act as a stabilizing force, with its rising stock price directly driving the overall valuation expansion of the semiconductor sector. Meanwhile, traditional AI server concept stocks were active, supported by expectations of terminal demand, becoming an important underlying logic for the Taiwan Weighted Index (TWSE: TAIEX) to break through the 45,000-point mark. Market participants have given a high premium to the commercialization of edge computing devices and new personal computer chips.
Capital Game and Profit-Taking Characteristics
Despite the benchmark index reaching a new historical high, the intraday trading structure showed clear capital divergence. Today's preliminary market turnover reached 1.6075 trillion New Taiwan dollars, showing a slight contraction compared to the revised 1.6111 trillion New Taiwan dollars of the previous trading day. This liquidity characteristic indicates that after the index continuously refreshed its high, some institutional investors chose to take short-term profits. Analysts from KGI Securities noted in their post-market evaluation that the main support for today's market still concentrated on personal computer OEMs and AI server assembly companies. However, as the index quickly rose intraday, selling pressure at high levels emerged, leading to significant market oscillation and pullback. The intraday capital game intensified the rotation frequency between sectors, showing a cautious balance between optimistic expectations and high valuations.
Technical Observation and Moving Average Support Logic
From a technical indicator perspective, the Taiwan Weighted Index (TWSE: TAIEX) showed relatively solid bottom support during the intraday pullback. The index only tested the low range of the previous trading day and did not touch the five-day moving average currently at 44,704 points. Analysts believe this mild correction is a typical continuation pattern in an uptrend, reflecting that short-term chip exchange has not disrupted the medium- to long-term upward channel. If the core moving average system maintains a bullish alignment and volume does not show substantial shrinkage, the overall market uptrend is sustainable. If the external macro environment does not present systemic downward pressure in the coming trading days, the index is expected to further consolidate the existing price platform after digesting short-term profit-taking.
Cross-Asset Impact and Overseas Macro Mapping
The robust performance of Taiwan tech stocks resonated with the overnight trends on Wall Street. The main U.S. stock indices recorded slight gains the previous trading day, driven by marginal improvements from two dimensions. First, tech companies released new chips expected to deeply embed AI technology into personal computing terminals, directly boosting the forward order expectations of the Asian supply chain. Second, on the macro-geopolitical level, investors are closely monitoring substantial progress in peace talks between the U.S. and Iran. If the geopolitical premium in the Middle East can be substantially reduced, global commodities, especially energy prices, will face revaluation, helping to alleviate imported inflation pressure, thereby providing more accommodative monetary policy space for major global central banks, including the Federal Reserve (Fed). This improvement in macro liquidity expectations objectively provides a favorable external environment for the valuation center of emerging market assets.
