US Stocks Surge, TSMC ADR Jumps 3% – Analysts: Taiwan Market Poised for Rebound

Central News Agency Report

(CNA reporter Jiang Mingyan, Taipei, 12th) Optimism over an imminent US-Iran agreement has lifted US stock markets sharply. The Philadelphia Semiconductor Index surged 7.91%, TSMC's American Depositary Receipts (ADR) rose over 3%, and Taiwan's stock index futures night session climbed 1,163 points (2.69%) to close at 44,382. Investment analysts suggest the strong US market performance could fuel a rebound in Taiwan's equity market. Although concerns over interest rate policy persist, rising AI demand continues to attract domestic investors to buy on dips.

On November 11, US stocks posted their best single-day gain in two months, while international oil prices declined. US President Donald Trump announced the cancellation of planned airstrikes on Iran, boosting hopes for a diplomatic resolution and smoother global oil transportation.

The Dow Jones Industrial Average rose 929.97 points (1.86%) to 50,518.25, the S&P 500 gained 127.31 points (1.75%) to 7,393.87, and the Nasdaq Composite surged 640.16 points (2.54%) to 25,837.12. The Philadelphia Semiconductor Index jumped 964.98 points (7.91%) to close at 13,171.44.

US tech stocks rebounded strongly: Intel rose over 9%, memory giant Micron surged over 11%, AMD and ASML gained over 7% and 9% respectively, and NVIDIA climbed over 2%. TSMC's ADR rose 3.26%.

Taiwan's stock index futures night session climbed 1,163 points (2.69%) to close at 44,382.

On November 11, Taiwan's stock market plunged over 1,200 points early in the session, narrowly holding the 42,000-point level. However, strong buying in active ETFs and AI-related stocks helped the market recover. The weighted index closed at 43,149.46, down 76.08 points (0.18%), but with a long lower shadow of 1,143 points, indicating solid underlying support.

Institutional investors collectively sold NT$35.391 billion. Domestic dealers sold NT$12.4 billion, trust funds bought NT$12.788 billion, and foreign and mainland Chinese investors sold NT$35.779 billion.

Analysts note that optimism over a US-Iran deal and strong US market performance could support a rebound in Taiwan's market. However, concerns remain over rising US employment data and CPI, which may push the new Federal Reserve chair toward a hawkish stance. Additionally, upcoming IPOs from tech giants like SpaceX, OpenAI, and Anthropic could drain market liquidity, pressuring global tech valuations. Nevertheless, demand for chips, servers, and edge computing devices continues to rise. Domestic investors are actively buying on weakness, preserving the bullish technical structure of the index. (Edited by Lin Chia-hsien)