Preface

The Taiwanese stock market is buzzing with excitement as it attempts to break the 22,000-point barrier. Spearheaded by significant foreign investment and the dynamic influence of Nvidia's CEO Huang Renxun, the market shows resilience despite global uncertainties. Meanwhile, U.S. shipping prices have surged by over 20%, influenced by temporary trade truce and early demand peaks. In this article, we explore the factors contributing to these market movements and their potential implications.

Lazy bag

Key highlights include an impressive 928-point rally in Taiwanese stocks, Nvidia's AI announcements, and significant shipping price hikes caused by market dynamics and trade policies.

Main Body

The Taiwanese stock market's recent performance has grabbed the attention of investors worldwide. After a substantial rally of 928 points over the past week, the cumulative rebound since May has reached an impressive 1600 points. This surge is primarily attributed to a four-week streak of aggressive foreign investor buying. However, experts warn that while the U.S. has temporarily delayed tariff implementations, the risks remain. The expansion of foreign futures net short to 37,000 contracts coupled with Moody's downgrading U.S.'s credit rating to Aa1 raises concerns about the U.S. economy. These factors could potentially impact Taiwanese stocks, urging caution against risky, short-term investments during volatile phases.

Amidst this, Nvidia's CEO Huang Renxun has made waves with his 'Trillion Dollar Banquet', hosting Taiwanese tech giants such as TSMC, MediaTek, Quanta, ASUS, and Pegatron. Huang emphasizes that the AI industry is in its infancy and highlighted Nvidia's ambitious plans to build AI supercomputers globally. Taiwan is expected to play a crucial role, indicating a promising but busy future for the country's tech sector.

On the currency front, the New Taiwan Dollar experienced a strong sideways consolidation, closing slightly higher at NT$30.172 against the U.S. Dollar. This appreciation trend has continued for seven consecutive weeks, with significant implications for the country's export competitiveness and monetary policy.

In parallel, the Shanghai Shipping Exchange's latest container freight index reveals a remarkable rise, driven by a 20-30% price surge in U.S.-bound shipping due to the unexpected early peak in seasonal demand and trade negotiations between the U.S. and China.

Elsewhere, GlobalWafers America has launched its advanced semiconductor silicon wafer manufacturing plant, aiming to further bolster the industry with an additional $4 billion investment in the U.S. This strategic expansion aligns with global market trends and geopolitical considerations.

Key Insights Table