US Stocks Close Higher and International Developments
The four major US stock indexes closed broadly higher, led by strength in the Philadelphia Semiconductor Index. The Federal Reserve held interest rates steady, with Warsh sending a hawkish signal. SK Hynix surged 13.3% on strong HBM demand, lifting Micron by 5.86%. SK Hynix posted record-high third-quarter revenue and profit margins, and revealed that capacity through 2029 has been effectively sold out, with the supply shortage expected to last into 2030. Microsoft rose 2.6% after hours on 48% growth in its cloud business; Alphabet tumbled 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 slump in local stocks, currency and bonds.
Taiwan Stocks Reclaim Quarterly Moving Average but Volume Shrinks
The Taiwan Weighted Index surged 939.35 points in the previous session to close at 47035.58 points, reclaiming the quarterly moving average and the 47000-point level, although turnover fell to 7221.35億元, the lowest 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. In terms of chips, the three major institutional investors bought a net 298.95億元, with foreign investors buying a net 159.57億元, while net short positions in TAIFEX index futures fell by 1126 contracts, and the New Taiwan dollar appreciated 3.4 cents to close at 32.418. On the macro front, central bank Governor Yang Chin-long said inflation would be under control if it falls below 2% next year, and said domestic banks have ample liquidity with no money crunch.
Chip Supply Chain and Technology Group Focus
The chip and technology groups saw frequent positive news. Market reports said TSMC and Xintec will jointly spend over 200億元 to buy two fabs in the Central Taiwan Science Park from AUO to expand their advanced packaging footprint. UMC CEO Wang Shi forecast at an earnings call that average wafer prices in 2027 will rise 10% year-on-year, and announced about 1032億元 in additional capital expenditure to accelerate expansion in Singapore and Tainan, targeting silicon photonics and advanced packaging. Google's in-house TPU is reportedly set to be purchased by OpenAI, boosting supply chains including Gold Circuit Electronics, Unimicron, Nan Ya PCB, Asia Vital Components and Delta Electronics. Strong third-quarter results from optical communications giant Corning lifted WIN Semiconductors and Advanced Wireless Semiconductor to limit-up, while LandMark Optoelectronics also signed a four-year long-term contract to expand capacity. CCL leaders Elite Material (EMC) and Taiwan Union Technology (TUC) posted strong third-quarter profits, while Apple's new laptops also drove stocking opportunities for contract manufacturers such as Hon Hai (Foxconn) and Quanta.
Traditional Industries, Financials and Other Industry Developments
In other industries, President Chain Store posted record-high first-three-quarter profit of 92.93億元, Chunghwa Telecom proposed a constellation alliance plan to raise funds to launch low-earth-orbit satellites, and testing equipment maker Hongjin earned 93.47 per share in the first three quarters. The Navy released nearly 300億元 in unmanned boat orders, attracting bids from Taiwan and US firms, while concerns over a major port strike provided long-term support for the container shipping trio. 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 policies driving dual-track revenue. In addition, mortgage delinquencies at domestic banks rose to 97.59億元, approaching 10 billion, while the cross-industry credit-check mechanism between brokerages and banks will go live in early November. Stocks and data mentioned are for news reporting and compilation only and do not constitute investment advice.