U.S. stocks closing higher boosts investor confidence, Taiwan stocks fluctuate but maintain the 20,000-point level, and investors are focusing on earnings reports and economic data.

Following the major U.S. stock indices closing in the green, the Taiwan stock market turned positive after a slight dip in early trading on April 29th, with the index hovering around the 20,000-point mark. TSMC's stock price slightly declined, failing to continue the previous day's upward trend. Global market sentiment improved due to progress in tariff negotiations between the U.S. and several other countries, as investors focus on upcoming corporate earnings reports and U.S. economic data. Although market uncertainty persists, the overall atmosphere has stabilized compared to earlier periods.

U.S. Stocks Close Higher, Tech Earnings Take Center Stage

On April 28, the U.S. stock market closed with a steady performance. The Dow Jones Industrial Average rose by 114.09, closing at 40,227.59, a gain of 0.28%. The S&P 500 Index edged up by 3.54 to close at 5,528.75, while the Nasdaq Composite slightly declined by 16.81 to 17,366.13, a drop of 0.1%. The Philadelphia Semiconductor Index fell by 16, closing at 4,235.62, a decrease of 0.38%.

Market sentiment was lifted by Alphabet's earnings, which exceeded expectations. Investors are closely watching the upcoming "earnings super week," with tech giants like Apple, Amazon, Meta, and Microsoft set to release their results. According to FactSet, 73% of S&P 500 companies have reported earnings that exceeded analysts' expectations, indicating resilience in corporate fundamentals.

Taiwan Stocks Fluctuate, Maintain Above 20,000 Points, TSMC Slightly Retreats

Encouraged by the U.S. stock market, Taiwan stocks opened slightly lower at 20,018 on April 29, briefly turning positive to 20,080, and dipping to a low of 20,007, fluctuating around the 20,000-point mark. On the previous trading day (April 28), Taiwan stocks surged by 161.68, closing at 20,034.41, marking the first return above 20,000 points since early April when Trump announced high tariffs.

TSMC (2330) opened flat at 897 NT dollars on the 29th, dipping to 893 NT dollars during the session, a decline of less than 1%. Although it did not continue the previous day's 1.01% rise, it remained above the 5-day, 10-day, and monthly moving averages. TSMC's American Depositary Receipt (ADR) in the U.S. market slightly fell by 1.03%, closing at 163.4 USD.

Other major stocks showed mixed performances, with electronics stocks like Quanta, MediaTek, and Hon Hai slightly declining, while Chunghwa Telecom and financial stocks like Fubon Financial and CTBC Financial remained relatively stable. Overall trading volume slightly decreased, with an estimated total daily turnover of about 235 billion NT dollars.

Tariff Negotiations Ease, Asian Countries Accelerate Talks

Recent progress in tariff negotiations between the U.S. and multiple countries has slightly eased market concerns about a trade war. U.S. Treasury Secretary Besent stated that negotiations with Asian countries, including India, Japan, and South Korea, are progressing smoothly. Some countries may reach interim agreements before the 90-day reciprocal tariff buffer period ends to avoid the reinstatement of tariffs as high as 25%.

In contrast, negotiations with China are still in the early stages. Although the Trump administration claims to have initiated dialogue with China, Beijing denies such claims. Market analysts observe that while both sides have signaled easing tensions, no concrete agreements have emerged.

Against this backdrop, export-oriented Asian countries like India and South Korea are actively responding to U.S. demands, including expanding market access, reducing non-tariff barriers, and increasing investments in the U.S. These measures help mitigate the impact of trade friction on the regional economy.

Investors Focus on Corporate Earnings and Economic Data

With tariff issues temporarily cooling down, market attention shifts to upcoming U.S. economic data and corporate earnings. Data expected to be released this week include the preliminary first-quarter GDP, the Federal Reserve's preferred inflation gauge, the PCE Price Index, and the April non-farm payroll report.

These data points will be key for the market to evaluate the impact of tariff policies on the U.S. economy. According to analysis, although corporate earnings have generally exceeded expectations, Wall Street has begun to lower second-quarter and full-year profit forecasts, reflecting a cautious outlook on future economic prospects.

In Taiwan, institutional investors note that the Taiwan stock market has rebounded by 15.76% from the early April low of 17,306 points. Although trading volume has not significantly increased, foreign investors have been net buyers for two consecutive days, with cumulative net purchases exceeding 20 billion NT dollars, indicating a gradual return of capital momentum. Institutional investors recommend focusing on large-cap stocks with liquidity for short-term operations and retaining cash to respond to market changes.

TSMC and Supply Chain Dynamics

TSMC's recent stock performance has been influenced by multiple factors, including U.S.-China trade relations, AI application demand, and the progress of U.S. plant construction. Institutional investors note that TSMC's second-quarter outlook has not been revised down, and capital expenditures remain unchanged, indicating confidence in the company's full-year operations.

Additionally, NVIDIA's next-generation AI chip, the GB300, is expected to begin production ahead of schedule in May, using TSMC's 5nm process and CoWoS-L advanced packaging. This is anticipated to further boost the operational performance of TSMC and its supply chain, including related stocks like Unimicron and ASE Technology.

U.S. stocks closing higher boosts investor confidence, Taiwan stocks fluctuate but maintain the 20,000-point level, and investors are focusing on earnings reports and economic data.

Key Updates

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