Benchmark Index Surges 716 Points, TSMC Stands Above 2425
Taiwan stocks opened sharply higher on the 28th, with the benchmark index opening at 46812.51 points, up 716.28 points, or 1.55%, showing active return of buying. The OTC index representing small and mid-cap stocks opened at 389.41 points, up 10.21 points, or 2.69%, outperforming the broader market, as large-cap bellwethers and small and mid-cap stocks rebounded together. Market leader TSMC (2330) opened up 25 to 2425, up about 1.04%, retaking the 2400 mark, providing key support for the market rebound and lifting confidence in semiconductor stocks.
Glass, Plastics and Electronics Rise Together, Concept Stocks Strengthen
Among listed sectors, glass rose 4.62% the most, with Taiwan Glass up 8.90%. Plastics rose 3.75%, with Nan Ya up 4.54%. Electronic components rose 3.73%, with Unimicron surging 5.19%. Optoelectronics rose 3.36%, with Genius Electronic Optical jumping 6.20%, all outpacing the benchmark index, reflecting buying spreading from bellwethers to electronic components and optics. Among concept stocks, the Google TPU concept index rose 4.0%, third-generation semiconductor concept stocks rose 3.72%, 5G concept stocks rose 3.71%, Thunderbolt 5 concept stocks rose 3.36%, with LuxNet up 4.60%. On the weak side, sports and leisure fell 0.86%, with Pou Chen down 0.58%. Food fell 0.68%, with Uni-President down 1.12%. Autos fell 0.47%, with China Motor down 4.00%. Digital cloud fell 0.47%, with GOGOLook up 1.51%.
U.S. AI Buying Returns, Analysts Warn Against Chasing Highs
Taiwan stocks opened higher mainly driven by stronger U.S. stocks on the 27th, with artificial intelligence buying returning, plus lower international oil prices easing cost concerns, and major U.S. indexes closing higher together, with the S&P 500 rising for a second straight trading day. The Dow Jones Industrial Average was dragged by a plunge in Boeing shares but still closed up about 16 points, U.S. bond prices showed limited movement, while the dollar strengthened. Lun Yuan Investment Consulting analyst Chen Xuejin believes that with Anthropic filing for listing and Meta's 25 billion dollar issuance oversubscribed 5 times, AI enthusiasm has warmed, Broadcom and AMD-led chip stocks led gains, the Philadelphia Semiconductor Index surged over 3.6% and stood above the 10-day line, margin financing fell sharply by 20.9 billion over two consecutive days, and easing foreign selling favors a continued rebound, with the investment theme still AI specification upgrades, with upgrade demand in CPO/optical communications, power, cooling, PCB and memory.
Qifa Investment Consulting analyst Rong Yishen believes that with the Taiwan dollar no longer hitting new lows, the index is temporarily supported at 45000 to 46000, awaiting clarity after the U.S. midterm elections, and with Japanese and Korean passive-component leaders no longer making new lows, a rebound in November and fund flows after Anthropic's listing on 1116 can be watched. For the outlook, watch whether TSMC can hold the 2400 mark and whether the OTC index continues to outperform the broader market, and avoid chasing higher on the strong open, while watching profit-taking selling pressure and fund allocation.