The Taiex index jumped amid the return of traders from the New Year holidays.
As trading resumed after the Lunar New Year holiday, Taiwan’s core indicator entered a bull market, fueled by a significant recovery in chip stocks and foreign buying in the market.
The underlying Taiex index gained 3.8% on Monday, its best day since May 2021, bringing its gains from an October low to 22%.
The Taiwanese dollar rises to its strongest level since August.
Big investors, including Warren Buffett, believe the worst is over for chipmakers, owing to attractive valuations and easing US-China tensions. According to Bloomberg, foreign funds have purchased $4.6 billion in stock since the beginning of the year.
Goldman Sachs Group Inc. raised Taiwan’s rating junk to market from junk at the end of last week, citing positive trade potential due to China’s reopening, a strong recovery in the technological cycle in the second half, and reduced short-term geopolitical risks.
Meanwhile, the Taiwanese dollar reached its highest level since August, rising 0.6% to 30.18 per US dollar.