Taiwanese equities staged a rebound on Monday as a powerful Wall Street rally, led by fresh record highs in the US technology sector, helped restore risk appetite, according to analyst Lin Han-wei. He said buying returned to large-cap leaders and steadied the broader index, while smaller stocks remained a market to watch for sector rotation rather than indiscriminate chasing.
The move followed a strong finish on Wall Street at the end of last week, when the Nasdaq Composite climbed to a record and several major US benchmarks reached new peaks. Technology shares were a particular source of support, with Micron, Intel, Apple and Tesla all advancing sharply. Lin said softer oil prices, triggered by signs of a new Iranian proposal, also eased pressure on sentiment, while stronger earnings from Apple and memory chipmakers reinforced the view that the rally in US tech was broadening rather than narrowing.
Market observers in Taiwan have repeatedly linked local strength to gains in US technology names, especially when semiconductor sentiment improves. Earlier reports from Taiwanese financial media showed the TAIEX recovering strongly after Wall Street rebounds, with Lin arguing on other occasions that the local market can regain stability when key support levels hold and overseas tech shares resume leadership. More recently, Taiwanese benchmark gains have even carried the index to successive historic highs, underlining how quickly momentum can return when global risk appetite improves.
On Monday, Lin said the overnight futures market had surged sharply, while TSMC’s American depositary receipts held firm and the dollar edged higher as US bond yields eased and oil slipped from elevated levels. He said the technical picture for the local market improved as the OTC board returned to a bullish track, though he warned that the fast rotation in strong shares makes chasing late entries hazardous.
His sector map pointed to several areas of interest. In the industrial and theme stock space, he highlighted robotics, panel packaging, LEDs, specialty chemicals and defence-related names. In electronics, he said TSMC futures were back above the five-day moving average, while PCB, IC design, silicon photonics, TSMC suppliers, cooling, memory, PCB equipment and mature-process stocks were all showing varying degrees of resilience or rotation. According to Lin, the key test now is whether that breadth can deepen without exhausting itself too quickly.
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Source: Noah Wire Services