Taiwan Stocks Reclaim Quarterly Line on Shrinking Volume, Institutions Lean Bullish
Taiwan equities surged 939.35 points in the previous session to close at 47035.58 points, successfully reclaiming the quarterly moving average and the 47000-point mark, although turnover fell to 7221.35億元, a new low since mid-September. On technicals, the 5-day moving average stood at 46470.79 points, the 5-day RSI was 51.53, and the 9-day K value crossed upward from a low to 21.54. On chips, the three major institutional investors posted a combined net buy of 298.95億元, including 159.57億元 from foreign investors, TAIFEX net short positions decreased by 1126 lots, and the NT dollar appreciated 3.4分 to close at 32.418元.
U.S. Stocks Close Higher Across the Board, HBM Demand Ignites Memory
The four major U.S. indices closed higher across the board led by strength in the Philadelphia Semiconductor Index, the Federal Reserve stood pat, and Warsh sent hawkish signals. SK Hynix surged 13.3% on strong HBM demand, lifting Micron by 5.86%. SK Hynix posted record-high third-quarter revenue and profit margin, and said capacity through 2029 has been substantially sold out, with the supply shortage expected to extend into 2030. Tech giants diverged, with Microsoft rising 2.6% after hours on 48% cloud growth; Alphabet plunged about 10% after hours on weak earnings and deteriorating cash flow. In addition, rising geopolitical risks pushed international oil prices higher, while Israel's election triggered a triple rout in local stocks, currency and bonds.
Wafer Duo Expands, Advanced Packaging in Focus
Market reports say TSMC and ChipMOS will jointly acquire two fabs in Central Taiwan Science Park from AUO for over 200億元 to expand their advanced packaging footprint. UMC CEO 王石 said at a briefing that average wafer prices in 2027 are expected to rise 10% year-on-year, and announced an additional capital expenditure of about 1032億元 to accelerate expansion in Singapore and Tainan, targeting silicon photonics and advanced packaging. Google's in-house TPU was reported to have won planned orders from OpenAI, boosting supply chains including Gold Circuit, Unimicron, Nan Ya PCB, Auras and Delta Electronics. In optical communications, Corning's strong third-quarter earnings sent WIN Semiconductors and Fuller to limit-up, while LandMark also signed a four-year long-term contract to expand capacity. CCL leaders EMC and TUC posted strong third-quarter earnings, and Apple's new laptops also drove stocking opportunities for contract manufacturers such as Hon Hai and Quanta.
Traditional and Electronics Sectors Each Have Themes, Central Bank Signals on Prices
In other industries, President Chain Store posted a record-high first-three-quarter profit of 92.93億元, Chunghwa Telecom proposed a Galaxy Alliance plan to raise funds to launch low-orbit satellites, and test equipment maker Hon Jang earned 93.47元 per share in the first three quarters. A nearly 300億元 Navy unmanned boat order has attracted Taiwan and U.S. bidders, while concerns over a major port strike provide long-term support for the big three container shippers. Japan's anti-dumping duties on nickel-based stainless steel from Taiwan should help Taiwan makers win diverted orders, while waste-incineration power generators also benefit from green energy policy with dual-track revenues. On macro, Central Bank Governor 楊金龍 said prices will be controllable if inflation falls below 2% next year, and said domestic banks have ample liquidity with no money crunch. In addition, mortgage delinquencies at domestic banks rose to 97.59億元, nearing 100億元, and the cross-industry credit-check mechanism between brokers and banks will go live in early November.