Taiwan Stock Market Soars Nearly 3,000 Points, 0050 ETF Breaks 100—Should You Buy? Hsieh Jin-He Analyzes Panic Sell-Off: Rebound Led by 'These' Stocks

Taiwan's stock market saw intensified volatility this week, leaving investors on edge. Amid tech earnings reports and the U.S. Federal Reserve's interest rate decision, the market swung wildly over just four trading days. It lost nearly 3,600 points in just two days, briefly falling below the 40,000-point level. However, on July 31, the market opened with a sharp rebound, surging nearly 3,000 points at one point. TSMC rose over 7%, and AI-related stocks rebounded strongly across the board. The widely watched ETF 0050 also climbed past 101 again.

On July 30, Hsieh Jin-He, Chairman of Wealth Media, posted an analysis on Facebook titled 'A New Game in Capital Markets.' He noted that global capital markets faced massive turbulence in July but predicted that global stock markets would now enter a phase of consolidation and adjustment. 'The most panic-stricken July sell-off may already be over!'

How volatile was Taiwan's market in July? It lost the 40,000-point mark this week.

Looking back at Taiwan's market performance this week: on Monday (July 27), the index closed slightly lower at 43,634.19. On the 28th, the weighted index plunged 2,030.19 points to close at 41,603.36—the third-largest point drop in history. The next day, July 29, it fell another 1,564.18 points to 40,039.18—the seventh-largest drop on record. Combined, the two days saw a near 3,600-point collapse.

On July 30, the market showed a strong rebound, briefly surging over 1,000 points and reclaiming the 40,000-point level. However, selling pressure emerged late in the session, and the market closed down 105 points at 39,933.30, losing the 40,000-point mark again. On July 31, the market opened up 2,604.86 points at 42,538.16, a 6.52% gain. The rally continued, briefly soaring nearly 3,000 points and surpassing 42,000 points—setting a new record for the largest intraday gain in Taiwan's stock market history.

In just over a month, Taiwan's market plunged more than 8,800 points, leaving investors devastated.

How much did South Korea's stock market fall in July? SK Hynix as a Key Indicator

Regarding global markets, Hsieh Jin-He noted that South Korea's market saw a 34% plunge in July due to deleveraging. Despite reporting strong earnings—SK Hynix posted a net profit of 93.86 trillion won in Q2—its stock price collapsed by 58%, with its P/E ratio dropping to just 3x. Hsieh emphasized that SK Hynix's correction is the core indicator. If it fails to stabilize, global market pressure will intensify. He identified two main drivers behind the memory sector correction: deleveraging and the unwinding of crowded AI trades. 'Many overhyped stocks have been cut in half.'

August will bring the 'semi-annual earnings season,' with most companies reporting strong Q2 results. With stock prices halved, solid earnings will support valuations. 'For example, Delta Electronics reported Q2 EPS of NT$9.68, UMC NT$3.39, and Transcend NT$27.7.'

Will Taiwan's market fall further in August? P/E Ratios Show Resilience

Hsieh analyzed that price corrections adjust valuations—stocks driven by hype and speculation correct sharply, while those with stable earnings and low P/E ratios show resilience. He added that the same companies hit by SK Hynix and Samsung's leverage shocks—like TSMC and other tech leaders—will likely lead the next rebound. On the Fed's fifth consecutive rate hold, he noted the Fed's hawkish stance, while former U.S. President Donald Trump advocates rate cuts. However, current conditions don't allow for cuts. The focus now is on what could trigger a shift. Market attention is on U.S.-Iran tensions, but Hsieh believes the Iran stalemate is unsolvable and conflict may become常态化, though oil prices won’t spike uncontrollably.