21.07.202606:19:40UTC+00TAIEX Jumps 4.2%, Rebounding from 2-Month Low

The TAIEX, Taiwan’s benchmark stock index, jumped 1,783 points, or 4.2%, to close at 44,233 on Tuesday, fully erasing losses from the previous two sessions and rebounding from its lowest level since May 22, reached a day earlier. The advance was driven mainly by gains in electronic technology, technology services, distribution services, and producer manufacturing shares.

The electronic technology sector led the recovery, climbing 4.6% after a 0.6% decline in the prior session, as traders looked ahead to key US tech earnings for guidance on the sustainability of the rally in AI-related stocks. Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s largest contract chipmaker and accounting for more than 40% of the market’s total capitalization — extended its gains, rising 3.0% after a 1.3% increase on Monday, supported by expectations of robust demand for AI chips.

Among other major names, MediaTek, Delta Electronics, and Hon Hai Precision Industry advanced 10.0%, 8.5%, and 4.9%, respectively.