FX.co ★ TAIEX Hits 2-Month High on Tech Sector Boost

The TAIEX, Taiwan’s benchmark stock index, climbed 683 points, or 1.5%, to 46,812 on Thursday, extending its winning streak to a fifth consecutive session and marking its highest close since July 1. The advance was driven primarily by strength in the electronics sector. The electronic technology sub-index added 1.4%, while technology services outperformed with a 4.1% surge.

TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization, rose 0.6%. MediaTek jumped 9.9% after Nvidia subscribed to USD 3.5 billion of its exchangeable bonds, as part of MediaTek’s record USD 3.9 billion overseas convertible bond issuance. Among other major tech names, Delta Electronics and Hon Hai Precision Industry advanced 0.8% and 1.6%, respectively, while ASE Technology Holding rallied 3.9%.

Investor sentiment was further supported by fresh data, with a private survey indicating that Taiwan’s manufacturing activity expanded solidly in August. However, gains on the TAIEX were tempered by a weak performance on Wall Street overnight, as rising oil prices rekindled concerns about inflationary pressures.