Opening Low and Climbing Back Above 45,000
The Taiex opened low and moved higher on the 2nd. Dragged by a plunge in U.S. technology stocks, the weighted index opened at 45034.53 points before selling pressure emerged, at one point plunging 812.73 points to an intraday low of 44399.1 points, falling below the 45,000 mark. Bargain-hunting buying then gradually entered the market, losses in electronics heavyweights narrowed, driving the index to rebound in volatile trading to an intraday high of 45156.17 points, a sharp rebound of about 757 points from the early low. As of 12:13 p.m., the weighted index stood at 45045.98 points, down 165.85 points or 0.37%, reclaiming 45,000, with the market watching for signs of stabilization.
MediaTek and ASPEED Turn From Losses to Gains
Electronics heavyweights and high-priced stocks were key to intraday stabilization. IC design giant MediaTek dipped to 3795 yuan in early trading before buying poured in to turn it from losses to gains, hitting an intraday high of 4070 yuan; power supply giant Delta Electronics also rebounded from a low of 1255 yuan to 1345 yuan, briefly turning higher. Among high-priced stocks, stock king ASPEED fell to an early low of 15350 yuan before recovering to around 16200 yuan, rebounding about 850 yuan from the low; optical lens leader Largan Precision rose 90 yuan or 1.66% intraday to 5520 yuan. In addition, Hon Hai, Unimicron and Elite Material also turned higher against the trend intraday, showing some funds flowing back into technology stocks. However, market leader TSMC remained under selling pressure, high-priced stocks diverged, and the rebound has not yet broadened fully.
Analyst: Seek Price Stability First, Then Volume
Commenting on the sharp intraday narrowing of losses, senior analyst Su Wei-yuan noted that active buying by investment trusts and government-linked funds has provided some support to the market. Although trading volume has not yet expanded significantly today, at this stage there is no need to insist on price and volume moving together; seeking price stability first and then a follow-up in volume is also an acceptable rebound rhythm. He stressed that there is no need to expect individual stocks to surge immediately, and priority should be given to watching whether key moving-average supports can hold, first stabilizing to avoid an expansion of losses. According to intraday quotes at 12:12 p.m., Taiex turnover had reached 5729.42亿元, with full-day turnover estimated at about 7907亿元, and attention remains on the sustainability of buying and whether electronics heavyweights can hold steady.
Focus on U.S. Midterms and Q3 Earnings
Looking back at international markets, U.S. technology stocks faced selling pressure last Friday, with both the Nasdaq and the Philadelphia Semiconductor Index plunging, as market concerns over AI capital spending and investment returns heated up, dragging on Taiwan electronics stocks. With the U.S. midterm elections starting this week, plus corporate earnings and economic data being released, multiple uncertainties remain in the short term. Notably, although the Taiex narrowed its losses, the New Taiwan dollar continued to depreciate against the U.S. dollar, showing funds still favoring the dollar, foreign-investor selling pressure has not eased, and stocks and the currency have not stabilized together. Looking ahead, Su Wei-yuan reminded that in addition to the U.S. midterm elections, Israel-related geopolitical risks still need watching, but historical experience shows a high probability of gains after midterm elections, with average gains of about 5%, 10% and 14% in the 1, 2 and 3 months after the election respectively. As listed companies release third-quarter earnings, corporate profits will become a key indicator to watch; in the short term, hold key supports first, and once sentiment stabilizes and volume follows, there will still be a chance to challenge highs again.