Taiex posts 2nd biggest point gain on U.S.-Iran 2-week truce

Taipei, April 8 (CNA) Shares in Taiwan surged by more than 1,500 points, marking the second-largest single-day point gain in history, after U.S. President Donald Trump agreed to a two-week truce with Iran, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, rose 1,531.56 points, or 4.61 percent, to close at the day's high of 34,761.38. The gain was second only to the 1,608.27-point increase recorded on April 10, 2025.

Turnover totaled NT$856.26 billion (US$26.73 billion), up from NT$584.69 billion on Tuesday.

• Taiwan shares soar over 1,000 points on U.S. ceasefire with Iran

"Look at the expanded turnover. I think more investors were willing to trade, encouraged by the ceasefire agreement," Concord Securities analyst Kerry Huang said.

The ceasefire agreement allows for the reopening of the Strait of Hormuz during the two-week period, which eased concerns over crude oil supplies, pushing down crude oil prices below US$100 per barrel.

"Market sentiment improved a lot as foreign institutional investors rushed to rebuild their positions by moving funds into the local market. Large-cap tech stocks simply benefited from fund inflows," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$117.77 billion of shares Wednesday, when the U.S. dollar fell NT$0.182 to end at NT$31.785 against the Taiwan dollar.

The electronics sector rose 5.44 percent to lead the uptrend after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, rose 4.84 percent to close at the day's high of NT$1,950.00, contributing about 720 points to the Taiex's rise.

Among other semiconductor heavyweights, shares in IC packaging and testing service firm ASE Technology Holding Co. soared 8.81 percent to end at NT$383.00.

Smartphone IC designer MediaTek Inc. jumped 7.48 percent to close at NT$1,580.00, and memory chip supplier Nanya Technology Corp. climbed 8.25 percent to end at NT$223.00.

Also in the tech sector, power management solution supplier Delta Electronics Inc. surged 10 percent, the maximum daily increase, to close at NT$1,665.00, and AI server maker and iPhone assembler Hon Hai Precision Industry Co. ended up 4.95 percent at NT$201.50.

"Plunging oil prices cut both ways," Huang said. "Petrochemical stocks largely came under pressure."

Taita Chemical Co. tumbled 10 percent, the maximum daily decline, to close at NT$23.85, Formosa Chemicals & Fibre Corp. lost 1.10 percent to end at NT$ 45.10, and Formosa Plastics Corp. closed down 0.63 percent at NT$47.20.

However, Nan Ya Plastics Corp., the parent company of Nanya Technology, rose 5.71 percent to end at NT$85.10.

In the financial sector, which rose 1.25 percent, Cathay Financial Holding Co. added 2.64 percent to close at NT$73.80, and Fubon Financial Co. gained 1.71 percent to end at NT$89.20.

"After today's rally, the Taiex stood above short and longer-term technical resistance levels, turning technically healthier," Huang said. "I expect the index to soon challenge the historical intraday high of 35,579 points seen on Feb. 26."