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Taiwan Stocks Maintain Bullish Momentum as Analysts Eye Further Gains Beyond Key Levels

Electronic Technology · Semiconductors · economic_daily · 2026-10-11

Despite caution at key psychological levels, analysts remain bullish on Taiwan stocks, citing strong corporate earnings and reduced expectations for Fed rate hikes.

What Happened

Bullish Market Outlook: Taiwan's stock market has regained momentum in October, and while investors remain cautious near key psychological thresholds, the overall bullish trend remains intact. Analysts emphasize that these round-number levels are merely waypoints rather than the end of the current market rally.

Corporate Earnings Strength: Market sentiment is bolstered by strong performance from key players like TSMC, with high expectations for AI-related sectors in the third quarter. As companies prepare for upcoming earnings calls, investors are positioning themselves for continued growth throughout the fourth quarter.

Fed Policy Easing: International capital flows suggest that the probability of a Federal Reserve rate hike in October has diminished significantly following softer non-farm payroll data. The Fed's more tolerant stance on inflation has alleviated concerns over high interest rates, providing a more favorable environment for equities.

Investment Strategy: Analysts recommend that investors stay active, projecting a trading range between 48,000 and 51,000 points. While short-term profit-taking may cause volatility, the combination of solid corporate earnings and a stable interest rate environment supports a strategy of buying on dips.

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