Trump announces draft of US-UK trade agreement, US stock market rises, Taiwan stock market reaches a new high, semiconductor and IC design stocks draw attention.

Taiwan • Business • 23h ago
Trump announces draft of US-UK trade agreement, US stock market rises, Taiwan stock market reaches a new high, semiconductor and IC design stocks draw attention.

On May 8, 2025, President Trump of the United States announced a draft of the first bilateral trade agreement with the United Kingdom, which includes tariff adjustments, expanding agricultural exports, and technological cooperation. The announcement boosted the three major U.S. stock indices, with the Dow Jones Industrial Average rising 254 points and the Nasdaq Composite increasing by 1.07%. The following day, the Taiwan stock market surged 371 points, with a focus on IC design and semiconductor supply chains, and stocks such as TSMC and MediaTek showing strong performance.

Key Updates

8h ago

For the first time in 28 months, TSMC Chairman C.C. Wei increased his shareholding by purchasing 20 lots of shares at the low point in April.

In April 2025, TSMC Chairman C.C. Wei purchased 20 lots of company stock on the centralized market when the stock price plummeted due to the U.S. "reciprocal tariffs" policy. This action was his first increase since December 2022. The purchase price ranged from 841 to 868 NT dollars, with a total expenditure of approximately 16.82 million to 17.2 million NT dollars. Several other TSMC executives also increased their holdings at this time, indicating internal confidence in the stock being at a low point. This move took place after TSMC's stock price dropped below 800 NT dollars, prompting both retail and institutional investors to enter the market.

11h ago

Latest Developments in Taiwan Stock ETF Market: 00940 Fails to Reach Issuing Price, 00730 Set to Go Ex-Dividend, FSC Relaxes Holding Restrictions, Female Investors Reach Record High

The Taiwan ETF market has been experiencing frequent activity recently. The Yuanta Taiwan Value High Dividend ETF (00940) completed its sixth dividend replenishment on May 8, but its stock price remains below the issue price, drawing the attention of investors. The Fubon Taiwan Quality High Dividend ETF (00730) is set to go ex-dividend on May 19, boasting an annualized yield of 6.13%. The Financial Supervisory Commission has relaxed ETF holding restrictions, allowing component stocks such as TSMC to be included according to their market value proportions. There is an increase in female investors participating in financial management, with the Cathay Sustainable High Dividend ETF (00878) with the number of beneficiaries surpassing 1.72 million, making it the top choice among housewives.

12h ago

In April 2025, amidst fluctuations in the Taiwan stock market, market-cap ETFs showed stable performance, with the FT Taiwan Smart ETF leading the way with a 17.3% gain, as the Taiwan stock market climbed back to 20,000 points.

In April 2025, the Taiwan Stock Exchange dropped more than 2,000 points due to global financial market turmoil and exchange rate fluctuations, hitting a low of 17,306 points. However, it quickly rebounded, with the weighted index climbing back to 20,235 points by April 30. Market-cap ETFs showed steady performance, especially the FT Taiwan Smart ETF (00905) by Franklin Templeton SinoAm, which gained 17.3% from April 9 to April 30, highlighting the resilience of its stock-picking strategy amid market volatility.

15h ago

The total market value of Taiwan stocks increased by over 400 billion TWD in a week: Stocks in the oil, electricity, and gas sectors led the gains, while the information services sector saw the most activity.

As of May 9, 2025, the Taiwan Stock Exchange Capitalization Weighted Stock Index rose by 127.4 points to 20,915.04 points, with a weekly increase of 0.61%. The total market value of all listed companies increased to 67.2714 trillion NTD, an increase of 4.13494 trillion NTD. The oil, electricity, and gas stocks led with a gain of 9.44%, while the home living stocks fell by 3.10%. The semiconductor stocks' transaction value was 4,100.44 billion NTD, accounting for 29.21%, and the information services stocks had the highest turnover rate at 18.82%.

19h ago

Amid Taiwan Stock Market Volatility: High Dividend Funds Demonstrate Resilience with a Dual Strategy of Technology and High Yields

Since 2025, the Taiwan stock market has experienced significant fluctuations due to tariff and currency wars, but high-dividend themed funds have demonstrated resilience, making them a stable investment choice. Statistics from CMoney indicate that actively managed Taiwan stock funds have dropped by an average of 16.5%, while high-dividend funds have only declined between 4% and 15%. Experts recommend that investors adopt a dual strategy of high-dividend and technology electronics stocks to strengthen the defensive capabilities and long-term return potential of their investment portfolios.

23h ago

Trump announces draft of US-UK trade agreement, US stock market rises, Taiwan stock market reaches a new high, semiconductor and IC design stocks draw attention.

On May 8, 2025, President Trump of the United States announced a draft of the first bilateral trade agreement with the United Kingdom, which includes tariff adjustments, expanding agricultural exports, and technological cooperation. The announcement boosted the three major U.S. stock indices, with the Dow Jones Industrial Average rising 254 points and the Nasdaq Composite increasing by 1.07%. The following day, the Taiwan stock market surged 371 points, with a focus on IC design and semiconductor supply chains, and stocks such as TSMC and MediaTek showing strong performance.

05/09 11:04

May 9, 2025, Taiwan Futures Market: The near-month contracts of Taiwan TAIEX futures and electronic futures saw a slight decline after hours, with market sentiment remaining stable.

On May 9, 2025, in the after-hours trading of the Taiwan futures market, the near-month Taiwan Stock Index Futures contract closed at 20,831.00 points, down 15.00 points, with a volatility of 0.31%. The near-month Electronics Futures contract closed at 1,132.30 points, down 0.55 points, with a volatility of 0.60%. The two major index futures experienced limited price movements, and market sentiment remained stable. There was a negative spread of 2.54 points between the electronics futures and the spot market, indicating conservative short-term expectations for electronics stocks.

05/09 11:04

On May 9, 2025, in the Taiwan Stock Index Options Market, proprietary traders are bearish, while foreign investors maintain a net long position in call options.

On May 9, 2025, the three major institutional investors showed divergent operations in the Taiwan options market. Proprietary traders took a bearish stance, net selling 2,653 call options and net buying 3,754 put options. Foreign investors maintained a net long position on call options, net buying 1,743 call options and slightly net selling 166 put options. Investment trusts did not conduct any trading. This reflects the different strategies institutional investors use to respond to market risks.

05/09 03:09

On May 9, 2025, the Taiwan Futures Market Night Session Rose: TAIEX Futures Closed at 20,680 points, Electronics Futures Closed at 1,125 points.

On May 9, 2025, in the post-market trading of the Taiwan futures market, the near-month Taiwan Stock Index Futures contract closed at 20,680 points, up 102 points, an increase of 0.5%. The near-month Electronics Futures contract closed at 1,125 points, up 10.6 points, an increase of 1.59%. Major index futures generally rose, indicating a stable trading environment and reflecting investors' confidence in the market. Other futures, such as the Semiconductor 30 and Taiwan Mid-Cap 100, also rose, but the Yuanta 20-Year U.S. Treasury Bond ETF Futures fell, indicating a divergence in trends between the stock and bond markets.

05/09 02:00

Taipei Stock Exchange opens strongly, rising over 100 points: led by TSMC, boosted by international trade news.

On May 9, 2025, the Taipei stock market was influenced by the new US-UK trade agreement, as well as news about the US-China trade negotiations, causing the weighted index to rise by 147.4 points to 20,690.8, hitting an intraday high of 20,762.38. TSMC opened with a significant jump of 20 NT dollars to 938, acting as the main driver. The market is still focused on the potential semiconductor tariff policy that the Trump administration might announce. The three major institutional investors collectively made net purchases of 740 million NT dollars, net short positions in foreign futures decreased, and options data showed a tug-of-war between long and short positions.

Draft of US-UK Trade Agreement Released, Market Sentiment Warms

President Trump announced from the Oval Office that the US and UK have reached a consensus on a new trade agreement draft. This agreement is the first signed with a country affected by tariffs since the Trump administration initiated the "reciprocal tariffs" policy. The agreement includes:

  • Maintaining a 10% baseline tariff on UK goods;
  • The first 100,000 UK cars imported to the US will be subject to a 10% tariff, with a 25% tariff on any additional cars;
  • UK steel and aluminum products will be exempt from the 25% tariff;
  • US agricultural exports to the UK will increase by $5 billion, including $700 million in ethanol and $250 million in beef and other agricultural products;
  • Both parties will cooperate to strengthen intellectual property protection, labor, and environmental standards;
  • Establishing a security mechanism for pharmaceutical and aerospace supply chains.

Additionally, the agreement allows the US to object to Chinese investments in the UK, indicating the inclusion of geopolitical considerations in the trade agreement.

US Stock Indices Rise, Led by Tech and Semiconductors

Boosted by the news of the agreement, major US stock indices closed in the green:

  • The Dow Jones Industrial Average rose 254.48 points (+0.62%) to close at 41,368.45 points;
  • The S&P 500 Index rose 32.66 points (+0.58%) to close at 5,663.94 points;
  • The Nasdaq Index rose 189.98 points (+1.07%) to close at 17,928.14 points;
  • The Philadelphia Semiconductor Index rose 44.08 points (+1%) to close at 4,430.44 points.

Tech stocks performed strongly, with Intel up 3.4%, Broadcom up 1.5%, and Micron gaining over 3%. TSMC ADR rose 0.39%, and NVIDIA slightly increased by 0.26%. However, Arm plummeted 6.18% due to not providing a full-year forecast.

Taiwan Stocks Also Strengthen, Led by TSMC and IC Design Stocks

Taiwan stocks surged on May 9 after the market opened, closing up 371 points at 20,915.04 points, a 1.81% increase, with a transaction amount of NT$294.43 billion. TSMC (2330) stock rose 3.38% to close at NT$949, contributing significantly to the market's rise. MediaTek (2454) also rose 2.71% to close at NT$1,325.

IC design and semiconductor supply chains became the market focus. MediaTek announced April revenue of NT$48.754 billion, a 16% year-on-year increase, the second-highest in history for the same period, with cumulative revenue for the first four months reaching NT$202.067 billion, a 15.15% year-on-year increase. The company estimates second-quarter revenue will decrease by 4% to increase by 4% quarter-on-quarter, with a year-on-year increase of 16-25%, and a gross margin estimate of 45.5-48.5%.

Other IC design stocks like Realtek (2379) and Novatek (3034) also performed well. Realtek's stock closed at NT$118.4, and Novatek closed at NT$242.2, both benefiting from stable demand for AI and automotive chips.

Semiconductor Supply Chain Also Benefits

Semiconductor supply chain-related stocks also strengthened. TSMC-related stocks like eMemory (6462) hit the daily limit, while ChipMOS (3551) and MPI (6510) rose over 7%. Packaging and materials companies like WIN Semiconductors (3105) and GlobalWafers (8086) also saw significant gains.

Additionally, Lite-On Technology (2301) saw growth in AI server power supplies and Mini LED shipments, with first-quarter EPS reaching NT$1.51, a 45.2% year-on-year increase, and full-year EPS estimated to reach NT$6.5 to NT$7. The company implemented a buyback of 130,000 shares, indicating confidence in future operations.

TWD Appreciation and Industry Exchange Loss Impact

The recent rise in the New Taiwan Dollar has put pressure on export-oriented industries, but some companies have limited exchange loss impact. According to financial reports, MediaTek noted that for every 0.1% appreciation of the TWD, the profit and loss would be affected by approximately NT$44.89 million. Other companies like Taiwan PCB Techvest (2383), Unimicron (2368), and Chicony (3017), with low P/E ratios and limited exchange losses, still have fundamental support.

Industry Policy and Supply Chain Resilience Become Focus

Taiwan's Minister of Economic Affairs, Chih-Hui Kuo, pointed out that the US is more likely to grant tariff exemptions to democratic countries, and Taiwan should strengthen supply chain resilience and promote the "offshore within borders" policy by establishing overseas trade and investment centers. Regarding the semiconductor industry, she emphasized that Taiwan has global competitiveness in manufacturing and engineering technology, making it an indispensable partner for the US in revitalizing manufacturing.

References

People Also Ask...

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