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Taiwan Stocks Rebound Over 2,600 Points: Analysts Highlight Three Key Indicators for Market Bottoming
Electronic Technology · Semiconductors · economic_daily · 2026-11-09
Following a period of intense volatility, Taiwan stocks have staged a strong recovery as investors shift focus from political uncertainty back to fundamentals.
What Happened
Market Rebound Potential: Taiwan stocks have seen a significant rebound as political headwinds subside and market focus shifts back to fundamentals. Analysts suggest that the recent correction was driven by a revaluation of AI growth expectations rather than a systemic decline in corporate earnings, with support expected between 40,000 and 43,000 points.
Technical Analysis: The index remains technically bearish, making it crucial to monitor support levels at 41,610 and 39,384 points. If market sentiment remains weak, the annual moving average will serve as the ultimate floor, prompting a cautious, phased investment approach.
Fundamental Outlook: With major political events in the U.S. and Taiwan concluding, political noise is expected to fade. The market's price-to-earnings ratio has corrected from 22x to below 15x, suggesting that valuations are becoming more attractive as focus returns to the long-term growth of AI data centers.
Liquidity and Sentiment: Foreign investors maintain a large net short position, and heavy selling in the spot market persists. Analysts warn that if margin debt does not decrease in line with the index, the resulting market instability could limit the upside, necessitating a selective approach toward high-quality, competitive stocks.