On September 25, 2024, Taiwan's stock market experienced a significant rally, with the TAIEX soaring by 298.1 points to close at 22,729.88, marking a two-month high. This surge was largely driven by a 4.13% increase in TSMC shares in the U.S. market, which pushed Taiwan-listed shares above NT$1,000 (approximately US$31). TSMC's stock reached NT$1,005, while other major players like Foxconn and MediaTek also saw gains, rising to NT$187.5 and NT$1,230, respectively. [44e81c6a]
The rally in Taiwan's stock market comes on the heels of the Federal Reserve's recent interest rate cut, which has provided a boost to investor sentiment. However, concerns about a potential economic recession linger, particularly following a drop in the U.S. Consumer Confidence Index. This duality of optimism and caution reflects the current state of the global economy, as investors remain wary of underlying economic challenges despite the positive market movements. [44e81c6a]
Earlier in September, Taiwan's market had faced significant challenges, with the TAIEX closing down 142.89 points at 22,092.21 due to fears of a U.S. economic slowdown. Reports indicated that U.S. manufacturing had contracted for five consecutive months, leading to price drops in major tech stocks, including TSMC. The negative sentiment was further exacerbated by a notable decline in U.S. stocks, with the Dow Jones Industrial Average dropping 626.15 points on September 3. [517388fa][53dc0056]
As the U.S. market continues to grapple with economic uncertainties, the upcoming jobs report is expected to play a crucial role in shaping the Federal Reserve's monetary policy. Analysts are closely monitoring these developments, as they could have significant implications for both U.S. and international markets, including Taiwan's. [53dc0056]
In summary, while TSMC's strong performance has propelled Taiwan's stock market to new heights, the ongoing economic concerns from the U.S. present a complex backdrop for investors. [44e81c6a]