Stock index, TAIEX, records the second-largest single-day increase in points
Stoked by Mellowing Trade Tensions, TAIEX Soars ✨
On April 23, Taiwan's stock market, the TAIEX, celebrated its second-largest historic daily point gain, surging up 845.71 points, or 4.5%, to 19,639.14. This impressive climb was catalyzed by optimism surrounding easing trade tensions between the US and China and a shift in Donald Trump's stance on Jerome Powell, the Federal Reserve Chair.
The day's turnover on the main board totaled NT$269.098 billion ($8.28 billion), as outlined in Taiwan Stock Exchange data.
Following a 1,608.27-point spike on April 10 after Trump paused most of the draconian tariffs he had announced, the second-highest point gain on record was now in the bag.
In synchronicity, Hong Kong, Tokyo, Sydney, Seoul, Wellington, Singapore, Mumbai, Manila, Jakarta, Bangkok, and Shanghai moved in a positive direction, while Shanghai edged down marginally.
Alex Huang, analyst at Mega International Investment Services Corp, offered his thoughts on the upturn: "The surge was entirely driven by news that bolstered investors' belief that the trade friction between Washington and Beijing is easing."
Trump initially hinted at the possibility of removing Powell following the Federal Reserve’s pause of cuts to short-term interest rates. However, during a press meet on Tuesday, Trump clarified, "I have no intention of firing him."
Investors were invigorated by comments from US Secretary of the Treasury Scott Bessent, who detailed his expectation of "a de-escalation" in Trump's trade war with China "in the very near future," during a closed-door event in Washington.
Concurrently, Trump acknowledged that the 145% US levies on Chinese goods were excessively high, signaling a prospective reduction in the near future.
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The April 23 rally was headlined by Taiwan Semiconductor Manufacturing Co (TSMC), which soared 6.99% to close at NT$873 in Taipei trading, thanks in part to a 2.39% rise in its American depositary receipts the prior night. This sector powerhouse contributed a staggering 460 points alone to the TAIEX's gains.
Though the markets exulted in the April 23 rally, investor caution remained apparent. According to Huang, "Many investors were hesitant to seize the momentum, fearing an unpredictable Trump might say something that could dampen investor sentiment and plunge the markets again." Additionally, the yet-to-be-resolved issue of tariffs on semiconductors added an element of uncertainty to the market's trajectory.
⚙️ Enrichment Data:
- The April 23, 2025 rally in Taiwan’s TAIEX was primarily fueled by optimism surrounding easing U.S.-China trade tensions, as reflected in comments from US Treasury Secretary Scott Bessent who anticipated a de-escalation "in the very near future."
- The tech sector, represented by heavyweight stocks such as TSMC, played a significant role in the April 23 surge, reminiscent of previous rallies triggered by tariff relief.
- The shift in market sentiment and subsequent rally were influenced heavily by policy statements, further reinforcing the TAIEX's sensitivity to U.S.-China trade dynamics and Trump’s tariff policies.
- The rally in Taiwan Semiconductor Manufacturing Co (TSMC) on April 23, 2025, a key player in Taiwan's tech industry, contributed significantly to the TAIEX's gains, echoing previous rises triggered by tariff relief.
- The positive trajectory of the TAIEX on April 23 was not only influenced by optimism surrounding easing U.S.-China trade tensions but also by comments from US Treasury Secretary Scott Bessent, who anticipated a de-escalation "in the very near future."
- Despite the upward momentum of the TAIEX on April 23, caution persisted among investors due to the unpredictable nature of Trump's statements and the yet-to-be-resolved issue of tariffs on semiconductors.
- The abrupt climb of Taiwan's stock market, the TAIEX, on April 23, 2025, was primarily driven by news that bolstered investors' belief that the trade friction between Washington and Beijing was easing, leading to a surge in TSMC's shares and subsequently influencing the overall finance and business sectors in Seoul and other global markets.
