Shift in Trump's Tariff Policy: Taiwan Stock Market Rebounds Strongly, New Taiwan Dollar Sees Significant Volatility

Taiwan • Business • 05/13 02:58

Since April 2025, the Taiwan stock market has strongly rebounded, and the exchange rate of the New Taiwan Dollar against the US Dollar has fluctuated dramatically due to President Trump's adjustment of reciprocal tariff policy. On May 12, the US and China announced a significant tariff reduction to be implemented within 90 days, with US tariffs on Chinese goods reduced to 30% and Chinese tariffs on US goods reduced to 10%. This move alleviated global trade tensions and boosted the performance of the Taiwan stock market and the New Taiwan Dollar. Financial author Chen Chongming stated that although exchange rate fluctuations affect short-term returns, he remains confident in the long-term prospects of the semiconductor industry.

Key Updates

05/14 07:27

U.S. stock futures slightly rise: Dow Jones Industrial Average surpasses 42,200 points, indicating stable sentiment in Asian markets

On May 14, 2025, at 12:33 PM Taipei time, futures for the three major U.S. stock indices slightly increased. Dow Jones Industrial Average futures rose 21 points to 42,249, S&P 500 futures increased by 2.75 points to 5,907.25, and Nasdaq 100 futures went up by 20.5 points to 21,298.5. This indicates stable market sentiment during the Asian trading session, as investors focus on global economic and corporate earnings developments.

05/13 18:31

U.S. inflation data falls to a four-year low, European stocks react differently: London edges down, Frankfurt and Paris edge up.

On May 13, 2025, European stock markets had mixed performances after the U.S. April CPI annual growth rate fell to 2.3%. The London FTSE 100 index dipped slightly by 0.02% due to a slowdown in the UK labor market affecting market confidence. Meanwhile, the Frankfurt DAX and Paris CAC 40 indices rose by 0.31% and 0.30%, respectively, boosted by a temporary reduction in tariffs between the U.S. and China and expectations for a rate cut by the European Central Bank. Markets remain cautious about the global economic outlook, reflecting a cautious, wait-and-see attitude amid the interplay of multiple factors.

05/13 17:25

Soft U.S. inflation data and easing U.S.-China trade tensions boost the S&P 500 and Nasdaq.

On May 13, 2025, the U.S. stock market rose due to the annual growth rate of the April CPI dropping to 2.3% and the easing of trade tensions between the U.S. and China. The S&P 500 and Nasdaq indices increased by 0.9% and 1.49%, respectively. The U.S. and China announced a suspension of some tariffs and significantly reduced tariff rates, which boosted market confidence. Technology stocks led the gains, with the Nasdaq entering a technical bull market. The yield on the U.S. 10-year Treasury bond declined, and the dollar index fell, indicating increased expectations of a shift in Federal Reserve policy.

05/13 10:59

Futures for the three major U.S. stock indices simultaneously declined: Dow futures fell more than 90 points as investors pay attention to inflation data.

On the afternoon of May 13, 2025, futures for the three major U.S. stock indices declined. Dow Jones Industrial Average futures dropped 93 points to 42,400, S&P 500 futures fell 19.25 points to 5,845.75, and Nasdaq 100 futures decreased 85.75 points to 20,863. The market was cautious ahead of the U.S. stock market opening, as investors focused on upcoming U.S. inflation data and economic indicators, which could impact the Federal Reserve's interest rate policy.

05/13 06:59

U.S. stock index futures decline: Market sentiment is cautious after the trade agreement, and the three major indices pull back from their highs.

After the US and China announced a 90-day tariff suspension agreement, US stocks surged early in the week. However, as of 1:30 PM Taipei time, May 13, 2025, US stock index futures retreated. Dow Jones Industrial Average futures fell 104 points to 42,389, S&P 500 futures dropped 20.5 points to 5,844.5, and Nasdaq 100 futures decreased 88.75 points to 20,860. Market sentiment turned cautious as investors reassess the real impact and risks of the trade agreement.

05/13 02:58

Shift in Trump's Tariff Policy: Taiwan Stock Market Rebounds Strongly, New Taiwan Dollar Sees Significant Volatility

05/13 02:26

The US and China reached a 90-day mutual tariff reduction agreement, which boosted global markets: US stocks surged by 1,000 points, and Taiwanese ADRs rose across the board.

On May 12, 2025, the United States and China announced an agreement to mutually reduce tariffs for 90 days, with the United States reducing tariffs from 145% to 30% and China reducing tariffs from 125% to 10%. This move boosted global markets, with all four major U.S. stock indices seeing gains. The Dow Jones Industrial Average jumped 1,160.72 points, and the Philadelphia Semiconductor Index rose by 7.04%. ADRs of Taiwanese companies like TSMC, Micron, and UMC also saw increases, with TSMC ADRs up 5.93%. The market's positive reaction reflects investors' optimism about easing trade tensions.

05/12 18:26

Truce in the US-China trade war sparks market volatility: Maersk's stock price soars, Novo Nordisk's stock price plummets, Trump announces Apple and TSMC will make substantial investments in the United States.

On May 12, 2025, the US and China announced a 90-day suspension of most tariffs, leading to a swift reaction in global markets. Maersk's stock price surged by 14%, becoming the biggest gainer in the Stoxx 600 index; Novo Nordisk's stock plummeted by 8.6% due to US policies aimed at lowering drug prices. Trump announced that Apple would invest $500 billion, and TSMC's investment would increase to $300 billion. At the US investment summit, Taiwanese companies considered relocating part of their supply chain to the US to adapt to policy changes.

05/12 14:26

Apple is planning to increase the price of the new iPhone, while remarks by Trump regarding investments and the US-China tariff ceasefire are driving a strong rebound in US stocks.

On May 12, 2025, Apple plans to increase the prices of the new iPhone series set to launch in the fall, without attributing the increase to US-China trade tariffs. Investment advice from U.S. President Trump and the 90-day temporary mutual tariff reduction agreement between the U.S. and China has driven a rebound in the U.S. stock market, with the S&P 500 index rising 14%. Apple's stock price increased by more than 7% in pre-market trading, driven by progress in trade negotiations.

05/12 07:00

On May 12, 2025, U.S. stock futures rose across the board: Dow futures, S&P futures, and Nasdaq futures rose simultaneously in the Asian trading session.

On May 12, 2025, futures for the three major U.S. stock indices increased during the Asian trading session. As of 1:34 PM Taipei time, Dow Jones futures increased by 446 points to 41,769, a rise of 1.08%; S&P 500 futures increased by 82.25 points to 5,760.25, a rise of 1.45%; Nasdaq 100 futures increased by 394.25 points to 20,531, a rise of 1.96%. This upward trend reflects the market's response to the international economic and trade conditions, setting a positive tone for the U.S. stock market's opening.

Taiwan Stock Market Strong Rebound, Institutional Buying and Policy Boost Momentum

The Taiwan stock market has quickly rebounded since the April stock crash, recently showing a pattern of "big rises and small pullbacks." According to the Economic Daily News, institutional funds are actively buying back, especially the three major institutional investors who have bought more than 3,000 lots of stocks like Uni-President Enterprises (9907), Wan Hai Lines (2615), and Quanta Computer (2382) in the past five days, becoming the focus of the market's leading rise. TSMC (2330) also received high-level executive buying at the April low of 780 TWD, with Chairman Mark Liu making a rare purchase of 20 lots, indicating high confidence in the company's operational prospects.

Additionally, the Taiwan index futures night market surged over 400 points at the close on May 12, with TSMC ADRs also pulling up sharply, reflecting the market's positive response to the shift in US-China tariff policy.

New Taiwan Dollar Exchange Rate Fluctuations, Central Bank Emergency Response

The New Taiwan Dollar has experienced significant appreciation against the US dollar since April. The rate of appreciation in April alone reached 3.64%, and on May 5, it briefly broke the 30 TWD mark to 29.59 TWD, appreciating by 1.474 TWD in a single day, a 4.75% increase. Central Bank Governor Yang Chin-long held an emergency press conference that afternoon, emphasizing that the US did not request the appreciation of the New Taiwan Dollar, and pointed out that the main reason for the appreciation was foreign capital inflow and exporters selling foreign exchange.

However, the exchange rate fluctuations have had a noticeable impact on the life insurance industry. The combined foreign exchange losses of the six major life insurance companies reached 18.7 billion TWD in April, the highest in a year and a half. Nan Shan Life Insurance suffered a monthly loss of 9.09 billion TWD, while Cathay Life Insurance and Fubon Life Insurance also lost 2.57 billion TWD and 2.41 billion TWD, respectively. Life insurers generally stated that they would respond to exchange rate risks by adjusting hedging strategies and asset allocation.

Trump Adjusts Reciprocal Tariff Policy, US-China Relations Turn

On April 2, US President Trump announced the implementation of a "reciprocal tariff policy" on 185 countries, with tariffs on Chinese goods as high as 145%. This move caused significant global market turmoil. However, as many countries sought negotiations, Trump announced on April 9 a 90-day suspension of reciprocal tariffs on more than 70 countries, except for China, and began a new round of negotiations with China.

On May 12, the US and China reached an agreement in Geneva, Switzerland, announcing mutual tariff reductions. The US will reduce tariffs on Chinese goods from 145% to 30%, including retaining a 20% fentanyl-related tariff and a 10% base tariff; China will reduce tariffs on US goods from 125% to 10%. Both parties also pledged to suspend other non-tariff retaliatory measures and establish a continuous consultation mechanism.

According to the White House fact sheet, this agreement will take effect on May 14 and last for 90 days. Trump stated that this is a "historic victory for US trade policy" and emphasized that it will help strengthen the US supply chain and manufacturing industry.

Chen Zhong-ming: Long-term Optimism for Semiconductor Industry, Short-term Exchange Rate Fluctuations Do Not Change Trend

Financial writer Chen Zhong-ming stated on his Facebook page on May 12 that although the sharp appreciation of the New Taiwan Dollar has reduced his investment return by 9% in the short term, he remains full of confidence in the long-term development of the semiconductor industry. He pointed out that as the demand for emerging technologies such as artificial intelligence, cloud computing, and automotive electronics continues to expand, the importance of semiconductors will only increase.

Chen Zhong-ming also mentioned that the Philadelphia Semiconductor Index (SOX) often experiences strong rebounds after significant declines, indicating that the industry's fundamentals remain resilient. He encourages investors to look far ahead and focus on the long-term growth potential of the technology industry.

Short-term Easing of US-China Relations, Market Sentiment Stabilizes

The US-China tariff agreement is seen as a major turning point in bilateral relations. Trump stated that he plans to speak with Chinese President Xi Jinping this weekend and emphasized that the relationship between the two countries is "very good." China also pledged to suspend the retaliatory tariffs and non-tariff measures imposed on US goods since April.

Although the agreement is only for 90 days, the market generally believes that this move will help stabilize the global trade situation in the short term. Major US stock indices saw gains across the board on May 12, with the Dow Jones Industrial Average surging 1,160 points and the Philadelphia Semiconductor Index (SOX) rising 7.04%, reflecting the market's positive evaluation of the agreement.

Shift in Trump's Tariff Policy: Taiwan Stock Market Rebounds Strongly, New Taiwan Dollar Sees Significant Volatility

Key Updates

U.S. stock futures slightly rise: Dow Jones Industrial Average surpasses 42,200 points, indicating stable sentiment in Asian markets

U.S. inflation data falls to a four-year low, European stocks react differently: London edges down, Frankfurt and Paris edge up.

Soft U.S. inflation data and easing U.S.-China trade tensions boost the S&P 500 and Nasdaq.

Futures for the three major U.S. stock indices simultaneously declined: Dow futures fell more than 90 points as investors pay attention to inflation data.

U.S. stock index futures decline: Market sentiment is cautious after the trade agreement, and the three major indices pull back from their highs.

Shift in Trump's Tariff Policy: Taiwan Stock Market Rebounds Strongly, New Taiwan Dollar Sees Significant Volatility

The US and China reached a 90-day mutual tariff reduction agreement, which boosted global markets: US stocks surged by 1,000 points, and Taiwanese ADRs rose across the board.

Truce in the US-China trade war sparks market volatility: Maersk's stock price soars, Novo Nordisk's stock price plummets, Trump announces Apple and TSMC will make substantial investments in the United States.

Apple is planning to increase the price of the new iPhone, while remarks by Trump regarding investments and the US-China tariff ceasefire are driving a strong rebound in US stocks.

On May 12, 2025, U.S. stock futures rose across the board: Dow futures, S&P futures, and Nasdaq futures rose simultaneously in the Asian trading session.

Taiwan Stock Market Strong Rebound, Institutional Buying and Policy Boost Momentum

New Taiwan Dollar Exchange Rate Fluctuations, Central Bank Emergency Response

Trump Adjusts Reciprocal Tariff Policy, US-China Relations Turn

Chen Zhong-ming: Long-term Optimism for Semiconductor Industry, Short-term Exchange Rate Fluctuations Do Not Change Trend

Short-term Easing of US-China Relations, Market Sentiment Stabilizes

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