Taiwan Stocks Rebound Sharply After Volatile Session Driven by High-Priced Shares

Taiwan's stock market exhibited dramatic swings on Friday, with the main index fluctuating by more than 900 points before closing with a modest gain. The session began on a negative note, mirroring a significant downturn in U.S. semiconductor stocks, which dragged down Taiwan's key players.

The Taiex index opened down 199.02 points at 46,545.14. The decline was exacerbated by a more than 5% drop in the Philadelphia Semiconductor Index and a 2.27% fall in Taiwan Semiconductor Manufacturing Company's (TSMC) ADR. This initial slide saw the index plummet by as much as 864 points, briefly dipping below the 46,000 mark.

However, a strong buying interest emerged, driving a gradual recovery. The index turned positive after midday, buoyed by a stabilization in TSMC's performance and significant gains in high-priced stocks such as Taimidek, Delta Electronics, Nan Ya Plastics, and GlobalWafers. By the end of trading, the Taiex index had risen by approximately 90 points, closing at 46,834 points, demonstrating the market's resilience.

This volatility occurred against a backdrop of mixed signals from international markets. While the Dow Jones Industrial Average reached a new record high on Thursday, driven by weaker-than-expected U.S. employment data that eased inflation concerns, the tech-heavy Nasdaq Composite and the Philadelphia Semiconductor Index faced pressure.