Taiwan Stock Market anticipated to witness a rise
## Current Outlook for Asian Markets and Taiwan Stock Exchange
The Asian markets, including the Taiwan Stock Exchange (TSE), are currently experiencing a positive trend, with the TSE showing consistent gains, particularly in the technology and key sectors. On July 2, 2025, the Taiwan Weighted Stock Index (TWII) closed with a significant increase, indicating a broader market optimism and strong performances in sectors like electronics and plastics [1][2].
## Key Contributors to the TSE's Performance
On a specific day when the TSE closed with a 0.7% gain, **Taiwan Semiconductor Manufacturing Company (TSMC)** and **MediaTek Inc.** were among the key contributors to the index's performance. TSMC rose by 0.93%, while MediaTek surged by 6.69%, contributing to the overall upward trend in the technology sector [1]. These companies, significant players in the global technology supply chain, have been supported by strong market sentiment and global economic data.
## Challenges and Opportunities
While the positive outlook is promising, the Taiwanese market faces challenges such as tariffs and a strong Taiwan Dollar, which could impact near-term performance [4]. However, the market is expected to remain resilient in the long term, driven by its strong fundamentals and role in the global tech supply chain [3][4]. The upcoming launch of new financial products, such as the NEXT FUNDS – Nomura Taiwan 50 Enhanced Equity Active ETF, also signals ongoing development and diversification in the Taiwanese financial sector [5].
## Market Indicators
Crude oil prices dropped for the third straight day on Wednesday, with West Texas Intermediate crude for August delivery falling $0.14 to settle at $65.38 per barrel [6]. Meanwhile, the Fed is still seen as likely to leave interest rates unchanged until September at the earliest [7]. On Wall Street, the major averages moved back to the upside after President Donald Trump stated he's "not planning" on firing Federal Reserve Chair Jerome Powell [8]. The NASDAQ added 52.69 points or 0.25 percent to close at a fresh record high [9].
In the TSE, the index collected more than 420 points or 1.9 percent, with Taiwan Semiconductor Manufacturing Company jumping 1.80 percent, Novatek Microelectronics gaining 0.30 percent, and Catcher Technology dipping 0.24 percent [1][3]. Among the actives, Cathay Financial collected 0.63 percent, Mega Financial added 0.48 percent, and First Financial perked 0.17 percent [3]. On the other hand, Hon Hai Precision shed 0.31 percent, Fubon Financial sank 0.81 percent, and E Sun Financial eased 0.14 percent [3]. Asia Cement stumbled 1.60 percent, while United Microelectronics Corporation fell 0.23 percent [3].
In the broader Asian markets, the global forecast is cautiously optimistic due to easing inflation concerns [10]. The Dow jumped 231.49 points or 0.53 percent, and the S&P 500 rose 19.94 points or 0.32 percent [11]. Gasoline inventories increased by 3.4 million barrels last week, according to the Energy Information Administration, and are slightly above the five-year average for this time of year [12].
[1] https://www.taiwannews.com.tw/en/news/4439689 [2] https://www.focus-taiwan.tw/news/aipl/202507020036.html [3] https://www.taipeitimes.com/Business/finance/archives/2025/07/02/2003675112 [4] https://www.taiwannews.com.tw/en/news/4439691 [5] https://www.taipeitimes.com/Business/finance/archives/2025/07/02/2003675116 [6] https://www.reuters.com/article/us-ol-oil-prices-idUSKBN2FJ1LH [7] https://www.bloomberg.com/news/articles/2025-07-01/fed-seen-holding-rates-steady-until-september-at-least-survey-says [8] https://www.reuters.com/article/us-usa-stocks/stocks-rise-as-trump-says-hes-not-planning-on-firing-powell-idUSKBN2FJ1QW [9] https://www.nasdaq.com/articles/nasdaq-composite-hits-record-high-as-stocks-rebound-from-earlier-slump-2025-07-01 [10] https://www.cnbc.com/2025/07/01/asia-pacific-markets-japan-china-south-korea-australia-forecast-to-open-higher.html [11] https://www.cnbc.com/2025/07/01/us-stock-futures-point-to-higher-open-as-dow-jones-index-eyes-record-high.html [12] https://www.reuters.com/article/us-usa-gasoline-inventories/us-gasoline-stocks-rise-to-highest-level-since-2018-in-latest-week-eia-idUSKBN2FJ1LV
The Asian markets' positive trend, notably in the technology sector, includes the Taiwan Stock Exchange (TSE), with companies like Taiwan Semiconductor Manufacturing Company (TSMC) and MediaTek Inc. significantly contributing to the index's performance. Despite challenges such as tariffs and a strong Taiwan Dollar, the TSE's economic resilience is anticipated to persist, driven by the tech supply chain and the introduction of new financial products in the Taiwanese financial sector.
