<h2>US TECH RALLY: A rise in semiconductor stocks on the US market boosted expectations for TSMC, which was the primary driver of growth on the TAIEX yesterday, an analyst said</h2>
Taiwanese shares yesterday closed nearly 2 percent higher, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC), following a retreat after the market topped 40,000 points for the first time.
Stocks were also sharply higher in Japan and South Korea yesterday on the back of artificial intelligence (AI)-fueled tech gains following US chip giant Intel Corp’s healthy revenue forecasts, even though the price of Brent crude oil jumped US$2.50 a barrel early in the day as talks between the US and Iran on ending the war in the Middle East remain stalled.
The TAIEX closed up 684.23 points, or 1.76 percent, at 39,616.63 after hitting a high of 40,194.92. Turnover expanded to NT$1.184 trillion (US$37.63 billion) from NT$1.033 trillion in the previous session, Taiwan Stock Exchange data showed.
The main board exceeded 40,000 points just minutes after it opened, boosted by a tech rally in the US on Friday,
when TSMC’s American depositary receipts rose 5.17 percent.
“TSMC was the major driver of the TAIEX’s gains today as the gains shown by semiconductor stocks on the US market boosted expectations about TSMC’s valuation,” Moore Securities Investment Consulting Co analyst Adam Lin said.
“I am not worried about the TAIEX’s failure to sustain its gains above 40,000 points today. I expect TSMC will continue to move higher on its sound fundamentals and US tech gains, helping the index challenge that level again,” he said.
TSMC closed up 3.66 percent at NT$2,265, off a high of NT$2,280.
The chipmaker’s stock also benefited from a Financial Supervisory Commission policy that took effect on Friday allowing exchange-traded funds (ETFs) to increase their investment in any single stock accounting for more than 10 percent of total market value to 25 percent of the ETFs net assets from the previous 10 percent.
TSMC accounts for more than 40 percent of the main board’s total value
With TSMC attracting most of the buying, some other tech stocks appeared lackluster, Lin said.
Smartphone chip designer MediaTek Inc closed unchanged, chip packaging and testing service firm ASE Technology Holding Co fell 0.10 percent and power management solution provider Delta Electronics Inc shed 2.65 percent.
However, AI server and iPhone assembler Hon Hai Precision Industry Co rose 2.93 percent.
In Asian trading, Tokyo’s Nikkei 225 surged 1.4 percent to 60,537.36 after touching a new intraday high of 60,903.95. South Korea’s KOSPI jumped 2 percent to 6,615.03, as chip and robotics stocks advanced.
Elsewhere, the Shanghai Composite Index gained 0.2 percent to 4,086.34, but Hong Kong’s Hang Seng Index shed 0.1 percent to 25,964.27. Australia’s S&amp;P/ASX 200 also slipped 0.2 percent to 8,766.40.
Additional reporting by AP

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The Taiwan Weighted Index (TAIEX) broke through 40,000 points for the first time yesterday, mainly driven by the rise in U.S. semiconductor stocks. Analysts pointed out that Taiwan Semiconductor (TSMC) is the main growth driver. The Taiwan stock market closed nearly 2% higher yesterday, while the Japanese and South Korean stock markets also surged due to the rise in AI-driven tech stocks. Despite Brent crude oil prices rising by $2.50, market sentiment remains optimistic

- The TAIEX closed up 1.76 percent, driven by a rise in semiconductor stocks and strong performance from Taiwan Semiconductor Manufacturing Co (TSMC).  
- The US market's tech rally, fueled by positive revenue forecasts from Intel Corp, contributed to the optimism surrounding TSMC, which is crucial as it represents over 40 percent of the main board's value.  
- Despite a challenging backdrop with rising crude oil prices and stalled geopolitical talks, analyst Adam Lin remains optimistic about TSMC's growth potential and its impact on the TAIEX's future performance.

TAIEX briefly tops 40,000 for first time