Taiwan Stock Market Rebounds Over 1,000 Points, Led by UMC and TPSCo Hitting Limits After Holding 40,000-Point Threshold

After two consecutive days of sharp declines totaling 3,595.01 points, the margin financing balance for listed and OTC stocks in Taiwan dropped by NT$52 billion in a single day, indicating further deleveraging. On the morning of the 30th, the market was volatile, initially falling over 600 points to a low of 39,404.65, retesting the 40,000-point level and the 50-day moving average, before rebounding strongly to rise over 1,000 points, reaching a high of 41,155.42. Trading volume surged to an estimated NT$1.18 trillion.

Although the U.S. Federal Reserve held interest rates steady and U.S. markets fell across the board yesterday, Japanese and South Korean markets staged a strong rebound, rising over 2.2% and 5% respectively in early trading, boosting sentiment in Taiwan.

Among electronics heavyweights, Unimicron and TPSCo, which reported strong earnings yesterday, along with UMC, which held its earnings call, surged to their daily trading limits early in the session. TSMC (2330-TW) opened at NT$2,205, maintaining gains throughout the morning. MediaTek (2454-TW) and Delta Electronics (2308-TW) also posted modest gains. However, Hon Hai (2317-TW) fell over 1%, ASE (3711-TW) dipped 0.1%, and Quanta Computer (2382-TW) saw the heaviest losses, falling more than half a limit.

With Quanta turning red, legacy AI-related stocks declined broadly. All of the 'Electronics Five Goats' were down: Inventec (2356-TW) fell over 4%, Wistron (3231-TW), Wiwynn (6669-TW), and Compal (2324-TW) dropped over 2%, and Pegatron (4938-TW) fell over 1%.

The optoelectronics sector emerged as a bright spot, led by rising shares in Largan (3008-TW). Largan and Advanced Optical (3362-TW) both gained over 2%. Additionally, the 'panel twins' rose as well, with Innolux (3481-TW) and AU Optronics (2409-TW) gaining over 3%, and Chunghwa Picture Tubes (6116-TW) up over 2%.

All four major U.S. indices closed in the red. The Dow Jones Industrial Average fell 1,153.18 points (2.19%) to close at 51,594.14. The Nasdaq dropped 433.97 points (1.74%) to 24,442.94. The S&P 500 declined 112.63 points (1.52%) to 7,316.15. The Philadelphia Semiconductor Index plunged 588.19 points (5.33%) to 10,447.49.