TWD

Introduction: Marginal Growth Amid Turbulence

Tuesday’s trading session on the Taiwan Stock Exchange ended with a symbolic gain. The Taiwan Weighted Index rose by 0.06%, closing almost exactly where it had opened. This marginal increase may appear insignificant, but it takes on greater importance in the context of current events.

Against a backdrop of geopolitical tensions in the Middle East, rising oil prices, and uncertainty surrounding Federal Reserve policy, the Taiwanese market demonstrated remarkable resilience. The plastics manufacturing, oil, gas and electricity, and chemical sectors strengthened, offsetting weakness in other market segments.

The movements of individual stocks were particularly notable. Aerospace Industrial Development Corp shares surged by 10%, Microtek International Inc gained the same amount, and LARGAN Precision Co Ltd also posted a double-digit increase. At the same time, Novatek Microelectronics Corp shares fell by almost 14%. This contrast reflects the mixed sentiment prevailing across the market.

Top Gainers: Aerospace, Microelectronics, and Optics

Aerospace Industrial Development Corp: A Rocket-Like Surge

Aerospace Industrial Development Corp shares became the day’s strongest performer, rising by 10% to TWD 63.80. This represents the maximum daily increase the company’s shares are permitted to record during a single trading session.

What was behind this surge? Geopolitical tensions in the Middle East may be benefiting the aerospace sector. Rising defense spending and increasing orders for military and civilian aircraft are creating favorable conditions for manufacturers operating in this segment.

The company may also have secured new contracts or announced technological breakthroughs that did not receive broad media coverage but were positively assessed by investors.

Microtek International Inc: Electronic Optimism

Microtek International Inc also posted an impressive 10% increase, closing at TWD 39.60. The company, which specializes in manufacturing scanners and other input devices, may have benefited from broader optimism within certain parts of the technology sector.

Interestingly,...

A Wednesday That Brought Nothing Good

When you wake up in Taipei and open your brokerage app, you expect to see green numbers. Or at least yellow ones. But not red. On the morning of June 10, 2026, everything was red. Not just red—blood red. Taiwan’s benchmark stock index, the Taiwan Weighted Index, the island’s main economic barometer, plunged 3.48% in a single day. Without any obvious domestic trigger. Simply because the world around it seemed to be falling apart.

This was not just a decline. It was a stampede for the exits. Investors sold everything they could. Technology stocks—especially semiconductor companies—were hit first. Glass manufacturers were dumped as well. Energy companies were not spared. Three sectors that form the backbone of Taiwan’s economy came under pressure simultaneously.

Who was to blame? External factors, as is often the case. The conflict in the Middle East, driving up oil prices and fueling panic. Expectations of prolonged high interest rates from the Federal Reserve, which continue to suppress demand for risk assets. An overheating artificial intelligence sector that, after months of relentless gains, has finally entered a correction. And, of course, the ever-present geopolitical tensions surrounding Taiwan itself.

But let’s take it step by step.

Technology Sector: The Main Casualty

Taiwan is semiconductors. Semiconductors are Taiwan. The island produces more than 60% of the world’s chips and over 90% of the most advanced ones. TSMC, UMC, MediaTek, ASE Group—names familiar to every investor on the planet. And when those names fall, the entire market follows.

On Wednesday, Taiwan’s technology sector suffered the steepest losses. Shares of WT Microelectronics, one of Asia’s largest distributors of electronic components, plunged 11.03%. A loss of NT$31 per share in a single session is enormous. Investors fled a company widely viewed as a barometer of electronics demand...