Taiwan Stock Market Opens: Heavyweight Stocks' Weak Rebound Faces Monthly Resistance, 43,000-Point Level Enters New Battle

Trading volume in the Taiwan stock market remained stagnant. TSMC (2330-TW), the market's leading heavyweight, opened down 1.9% today (4th). Meanwhile, early declines in major weighted stocks such as Hon Hai (2317-TW) and Quanta Computer (2382-TW) further suppressed the broader index. Technically, the market continues to face resistance from the monthly moving average line. The main index dropped nearly 400 points during morning trading, briefly touching 42,895.81, before rebounding toward the flat line, reigniting the battle for the 43,000-point level.

At the same time, Japanese stocks fell over 1% and South Korea’s market declined 2.45%, exerting downward pressure on Taiwan equities. In morning trading, Taiwan’s electronics sector dropped 1.12%, accounting for 86.37% of total turnover, while financial stocks fell 0.41%, representing only 0.5% of total trading value. Largan Precision (3008-TW) hit its daily limit up, with optical component and quartz component stocks showing strength.

The Taiwan market opened at 43,092.49 points, initially trending lower, with estimated total market turnover reaching approximately TWD 1.19 trillion. Senior securities analyst Jane Chien noted that the current market shows insufficient trading momentum, and resistance from the upper monthly moving average remains strong. Investors should exercise caution in capital management and strictly control their exposure levels.

On individual stocks today, TSMC declined, falling temporarily to NT$2,315. MediaTek (2454-TW) opened higher but reversed into negative territory. Among quartz component stocks, King Yuan Electronics (3042-TW), Jia Gao (8182-TW), An Qi (617-TW), Tai Chia Shuo (3321-TW), and Hattori (2484-TW) rose, with King Yuan and An Qi hitting their daily limit up.

In the IC substrate sector, Unimicron (3037-TW), Nan Ya PCB (8046-TW), and Tripod Technology (3189-TW) saw share price gains, with Tripod Technology reaching its daily limit up.

Uni Securities stated that corporate investment is driving steady U.S. economic expansion. This week’s upcoming employment data and PMI figures are expected to show stable growth, supported by falling oil prices and market position adjustments, helping tech stocks’ valuations return to reasonable levels. As major U.S. and Taiwan tech firms release earnings and host investor briefings, AI-related contributions have led to generally strong financial results. However, technically, the Taiwan market still faces short-term resistance from accumulated selling pressure and the quarterly resistance level at 44,100 points. With foreign institutional futures short positions exceeding 90,000 contracts, the index requires further consolidation.

Uni Securities recommends maintaining healthy cash levels, buying on dips, and strengthening positions in resilient stocks during rebounds. Stock selection should focus on mid-to-large-cap AI-related heavyweights with strong liquidity. Long-term tracking sectors include TSMC and advanced process/packaging, substrates and PCBs, power management, server rack rails, robotics concepts, specialty chemicals, and bicycle-related industries.

Overnight U.S. markets closed higher: the Dow Jones Industrial Average rose 693.38 points (1.32%) to 53,178.41. The Nasdaq Composite gained 540.04 points (2.13%) to 25,913.90. The S&P 500 increased 110.78 points (1.48%) to 7,600.50. The Philadelphia Semiconductor Index climbed 119.28 points (1.05%) to 11,430.35.

ADR closing performance showed TSMC (TSM-US) up 0.46% and NVIDIA (NVDA-US) surging 2.93%.