Taiwan stocks stabilize above 28,400 points, TSMC leads the charge to hit a new all-time high, optical lens concept stocks follow the rally.

Capital Ahead, Bullish Atmosphere Strong

In a sensitive moment ahead of the Federal Reserve decision, the Taipei stock market has demonstrated resilience beyond expectations. The weighted index closed today (10th) up 218.13 points at 28,400.73, a gain of 0.77%. The daily trading volume reached NT$492.18 billion, indicating a rebound in market participation. The market performance confirms that investor confidence in rate cuts and the global monetary easing environment continues to grow. Funds from all directions are actively entering after the market recovers all moving averages.

Fundamentals Support the Market, Large-Cap Stocks Take Turns Leading

TSMC played a key role in boosting the index today. The company announced its consolidated revenue for November after hours, reaching NT$343.614 billion, a 24.5% year-over-year increase, setting a new high for the same period. Cumulative revenue for the first 11 months exceeded NT$3.4 trillion, breaking historical records. Supported by the continued expansion of AI demand, institutional investors estimate that Q4 revenue may break quarterly records and even approach a single-quarter surpassing NT$1 trillion. Benefiting from this impressive report card, TSMC’s stock price rose from an opening price of NT$1,490, with strong buying momentum in the late trading session, closing at NT$1,505, up 1.69% for the day. The trading volume reached 23,000 lots, demonstrating solid volume support.

Apart from TSMC, MediaTek rose 2.82% to NT$1,460, and ASE Technology Holding increased nearly 2%, with large-cap stocks jointly stabilizing the market foundation. Notably, some AI concept stocks like Hon Hai and Quanta Computer experienced technical corrections, reflecting a sector rotation of funds.

A Hundred Flowers Bloom in Thematic Stocks, Emerging Concepts Take the Lead

While large-cap stocks set the tone, market funds are also shifting toward growth-driven thematic targets. Although some silicon photonics stocks faced pressure, the rally continued, with Zundar-KY soaring nearly 9% and Photonics also rising over 6%. Optical lens concept stocks attracted attention simultaneously, forming a synergistic effect with the silicon photonics industry chain.

Another highlight comes from the PCB sector. After Jinhui completed its disposal procedures, it re-emerged, with buying interest flooding in. The stock price hit the daily limit at NT$279, setting a new historical high and becoming the biggest winner among thematic stocks. Additionally, the high-priced stock ecosystem remains active. Wistron NeWeb, a major network communication company, surged to NT$1,090 during the session and hit the daily limit, remaining locked until the close, rejoining the high-priced stock club, reaffirming that market demand for high-value stocks remains strong.

Clear Fund Rotation Logic, Key Points for Future Trading

KGI Securities pointed out that the Taiwan stock market’s moving average arrangement remains bullish, with trading volume rebounding above the 5-day and 20-day averages, favoring a renewed push toward previous highs after consolidation. Guotai Securities emphasized that the December rate cut expectations, combined with market anticipation of a dovish Fed chair candidate, will drive the US dollar to weaken and the New Taiwan dollar to appreciate. This exchange rate movement will help strengthen foreign investment holdings and inject continuous liquidity into the Taiwan stock market.

Former White House economic advisor Hassett, considered a potential next Fed chair, recently stated that there is ample room for further rate cuts. This easing signal creates a favorable environment for global stock markets.

Short-term Volatility Does Not Change the Trend, November Highs Within Reach

Although the Fed’s post-meeting statement and chair’s remarks will become key indicators in the near future, Taiwan stocks, supported by continued improvement in corporate fundamentals and net inflows of foreign capital, still have the opportunity to launch a new attack toward the previous high of 28,554 points after short-term fluctuations. Investors should closely monitor the Fed’s forward guidance on the 2025 interest rate path and the subsequent international capital deployment in Taiwan stocks to grasp the upcoming trading rhythm.