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TSMC Tests Monthly Support as Taiwan Stocks Battle at 45,000 Level

Electronic Technology · Semiconductors · economic_daily · 2026-08-26

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Taiwan stocks face volatility as TSMC tests its monthly moving average, with the index struggling to hold the 45,000-point mark amid cautious market sentiment.

What Happened

Market Volatility: The Taiwan Stock Exchange opened lower today as TSMC tested its monthly support level, triggering a tug-of-war at the 45,000-point threshold. Despite a positive lead from US markets, local investors remain cautious regarding the performance of major heavyweight stocks.

Sector Performance: Market action remains mixed, with weakness in major tech stocks like TSMC and MediaTek being partially offset by gains in companies like Largan Precision and PairMed. While optoelectronics and biotechnology sectors show strength, shipping and retail sectors are currently underperforming.

Global Catalysts: Easing US bond yields and falling oil prices have provided some relief from inflation concerns, helping tech stocks recover. Investors are now shifting their focus toward upcoming Nvidia earnings and the Jackson Hole Economic Symposium for further market direction.

Investment Outlook: Analysts suggest that the market is currently oscillating between monthly and quarterly moving averages, advising caution regarding short-term resistance. Investors are encouraged to focus on fundamentally strong sectors such as liquid cooling, advanced packaging, and high-end materials.

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