Taiwanese stocks recover after historic crash – Technology shares on the rise again

Taiwanese stocks experienced a refreshing recovery on Tuesday following the historic plunge of the previous day. The main index surged by more than 4% in early trading, reaching a record high of 20,640.44 points. However, a rapid correction ensued, shrinking gains to about 1.75% by 02:30 local time. The heavyweight in the technology sector, Taiwan Semiconductor Manufacturing Company (TSMC), witnessed an impressive upswing. Shares of the world’s largest contract chipmaker, which supplies to Nvidia among others, climbed 5.6% after having already gained over 6%. Jeff Chang, Chairman of Cathay Securities Investment Trust, which manages assets worth more than one trillion Taiwan dollars (30.3 billion USD), noted that investors are primarily driven by concerns over the US economy and the rapid rise of the yen. "Yesterday's crash was inevitable," Chang explained, adding that Taiwan stocks have now reached a level with strong technical support. He expects a consolidation phase but believes current excellent buying opportunities exist for AI stocks—both now and during future pullbacks. In addition to TSMC, other significant technology stocks also rebounded. Mediatek increased by 7.5%, while Quanta rose by 2.1%. Premier Cho Jung-tai emphasized to reporters the solid fundamentals of the Taiwanese economy and assured that authorities would continue to closely monitor the situation. Global markets were shaken on Monday by fears of a potential recession in the United States and the withdrawal of investors from riskier assets. Lih-Chung Chien, President of the Taiwan Stock Exchange, stated that the exchange would closely cooperate with regulators if necessary to ensure stability.