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Taiwan Stocks Stage Massive Late-Session Rebound: Who Is Buying?
Electronic Technology · Semiconductors · economic_daily · 2026-08-25
Taiwan stocks saw a dramatic 1,000-point swing in late trading as local investors stepped in to support the market, signaling a healthier long-term outlook.
What Happened
Market Rebound: Taiwan stocks experienced a stunning intraday reversal, surging nearly 1,000 points from session lows to close in positive territory. Analysts suggest that the 40,000-point level remains a solid floor, with local institutional and retail investors absorbing the selling pressure from foreign entities.
Deleveraging Trends: While the M1B and M2 money supply growth rates have triggered a 'death cross,' this cooling of speculative capital is viewed as a positive development for market health. The reduction in total market leverage, currently around 1.3 trillion TWD, helps mitigate the risk of extreme volatility and supports a more sustainable bull market.
AI Growth Outlook: Although the adoption of AI technologies like automated customer service is moving slower than anticipated due to corporate inertia, this measured pace is beneficial for the stock market. By extending the cycle of capital expenditure and supply chain development, the market avoids the dangers of a short-term speculative bubble.
Long-term Strategy: Analysts remain bullish on the Taiwan market, projecting a potential climb toward 50,000 points by year-end and 100,000 points in the long term. Investors are advised to avoid chasing rallies and instead focus on fundamentally sound, low-valuation stocks, utilizing a disciplined, phased entry strategy.