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Fed Rate Outlook Boosts Taiwan Stocks; TSMC Leads 750-Point Rally
Electronic Technology · Semiconductors · economic_daily · 2026-09-04
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Taiwan stocks surged nearly 750 points as dovish comments from Fed Governor Waller eased rate hike fears, with TSMC leading a broad market recovery.
What Happened
Fed Policy Shift: Fed Governor Waller signaled a potential pause in interest rate hikes for September, provided inflation data continues to cool. This dovish stance calmed market anxieties, leading to a rally in U.S. equities and a strong follow-through in Taiwan index futures.
Market Rebound: Taiwan stocks opened higher and extended gains throughout the session, climbing nearly 750 points at the peak. TSMC and other major weighted stocks spearheaded the rally, successfully reclaiming the 5-day moving average.
Sector Performance: The rally was primarily driven by the computer equipment and electronic components sectors, reflecting renewed investor confidence in tech. Conversely, sectors such as shipping, finance, and energy lagged behind, highlighting a rotation of capital within the market.
Investment Outlook: Analysts suggest that while AI-related earnings and upcoming Apple product launches provide a positive backdrop, geopolitical tensions and currency volatility remain risks. Investors are advised to focus on large-cap AI stocks while avoiding chasing rallies.