Taiwan shares rebound after Trump announces Israel-Iran ceasefire

Taipei, June 24 (CNA) Taiwan shares rebounded sharply on Tuesday, recovering from a recent slump to close above the key 22,000-point mark. The rally was driven by buying sparked by U.S. President Donald Trump's announcement that Israel and Iran had reached a ceasefire, dealers said.

After falling 1.42 percent on Monday, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), rose 456.74 points, or 2.10 percent, to close at 22,188.76. The index moved between 22,001.48 and 22,201.05 during the session, with turnover totaling NT$393.92 billion (US$13.34 billion).

The market opened 1.24 percent higher after Trump declared a "complete and total" ceasefire between Israel and Iran. However, Tehran appeared more cautious, with Iranian Foreign Minister Seyed Abbas Araghchi posting on X: "There is NO 'agreement' on any ceasefire or cessation of military operations."

Despite the mixed messages, buying momentum persisted, particularly in large-cap tech stocks, helping the Taiex break through technical resistance at the 10-day moving average of around 22,141 points, dealers said.

"Many investors seemed to place more faith in Trump's announcement, with bargain hunters actively snapping up discounted stocks," said Alex Huang, an analyst at Mega International Investment Services.

"The electronics sector once again acted as a key driver, helping to restore the Taiex to a healthier technical level above 22,000 points," he added.

Among major tech gainers, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the market's most heavily weighted stock, rose 2.94 percent to NT$1,050.00, contributing about 240 points to the Taiex's rise.

Hon Hai Precision Industry Co., a key iPhone assembler and AI developer, added 2.88 percent to NT$160.50, while AI server supplier Quanta Computer Inc. climbed 2.66 percent to NT$289.50. Asustek Computer Inc., an AI PC brand, hit the daily limit, soaring 10 percent to NT$745.00.

Buying also spread to large-cap non-tech stocks. China Steel Corp. rose 2.44 percent to NT$18.90, and Chung Hung Steel Corp. gained 4.33 percent to NT$14.45.

In the petrochemical sector, Formosa Plastics Corp. rose 1.29 percent to NT$35.20, Nan Ya Plastics Corp. added 1.66 percent to NT$27.55, and Formosa Chemicals & Fibre Corp. advanced 2.47 percent to NT$22.85. However, Formosa Petrochemical Corp. fell 4.79 percent to NT$36.75.

Meanwhile, textile maker Far Eastern New Century Corp. rose 1.23 percent to close at NT$33.00, and Eclat Textile Co. gained 2.02 percent to end at NT$405.00.

The financial sector rose 1.11 percent overall. CTBC Financial Holding Co. gained 1.86 percent to NT$43.75, Fubon Financial Holding Co. rose 1.65 percent to NT$86.10, and Cathay Financial Holding Co. added 0.91 percent to NT$66.50.

"The next major technical resistance lies near the 240-day moving average of 22,272 points," Huang said. "If TSMC can climb past NT$1,070.00, the high from June 11, there's a strong chance the broader market could break out further."

According to TWSE data, foreign institutional investors bought a net NT$29.18 billion in shares on Tuesday.