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Taiwan Stocks Surge Over 1,900 Points on Policy Support, While TWD Weakens

Electronic Technology · Semiconductors · economic_daily · 2026-11-09

Taiwan stocks rallied over 1,900 points to reclaim the 41,000 level following government intervention, though the New Taiwan Dollar bucked the trend by weakening.

What Happened

Government Intervention: The National Stabilization Fund has initiated market support measures, complemented by the Financial Supervisory Commission's new short-selling restrictions. Bolstered by these policy moves and a strong rebound in the Philadelphia Semiconductor Index, the Taiwan stock market saw a massive rally, reclaiming the 41,000-point threshold.

Tech Sector Rally: Large-cap electronic stocks led the charge, with TSMC, Delta Electronics, Hon Hai, and MediaTek all posting significant gains. Delta Electronics hit its daily limit, highlighting a broad recovery in investor sentiment toward the technology sector.

Currency Divergence: In contrast to the equity market's strength, the New Taiwan Dollar weakened, falling past the 32.9 level against the greenback. Analysts suggest that while the stock market rebound improves sentiment, the currency remains under pressure from persistent demand for the U.S. dollar.

Market Outlook: While the stock market shows potential to stabilize and challenge the annual moving average, the currency market's weakness suggests ongoing capital flow uncertainties. Market participants are now watching for reduced foreign selling and potential export-related dollar selling to help stabilize the TWD near the 33 level.

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