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Taiwan Stocks Seesaw Amid US Market Holiday; TSMC Leads While Memory Stocks Provide Support

Electronic Technology · Semiconductors · economic_daily · 2026-09-08

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Taiwan stocks fluctuated during Monday's session as US markets closed for Labor Day, with TSMC's gains offset by weakness in other major tech heavyweights.

What Happened

Market Volatility: Taiwan stocks experienced a volatile session as US markets remained closed for the Labor Day holiday. The index initially opened slightly higher but later dipped by over 200 points, reflecting a tug-of-war between bulls and bears within the 47,100 to 47,400 range.

Heavyweight Performance: Major tech stocks showed mixed results, with TSMC providing initial support before losing momentum. While other key heavyweights like Hon Hai and ASE Technology struggled, strength in Nanya Technology and the substrate sector helped mitigate broader selling pressure.

Sector Rotation: Market activity highlighted a clear rotation, with gains in biotechnology, green energy, and petrochemicals. Conversely, sectors such as computer equipment, optoelectronics, and telecommunications faced selling pressure, indicating shifting investor sentiment.

Analyst Outlook: Analysts noted that the technical outlook remains strong, though monitoring trading volume—ideally reaching 1.2 trillion TWD—is crucial. Investors are advised to keep a close watch on TSMC's performance and foreign institutional activity in both spot and futures markets.

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