Taiwan Stocks Rally for Third Day Near Record High, While NT Dollar Falls 0.061 to Close at 29.916

[Fast Money News / Chen Mengshuo] Despite Taiwan stocks extending gains for a third straight session to approach historic highs, the New Taiwan dollar (NTD) weakened slightly against the U.S. dollar on Monday due to foreign capital outflows, closing at 29.916, down 0.061 from the previous session. Data from Taipei Forex Inc. showed the intraday high at 29.858 and the low at 29.918, with trading volume shrinking to $749 million from $807 million a day earlier. Forex traders noted that the market continues to digest the latest U.S. tariff policies and shifts in U.S.-China trade relations, with foreign investors locking in profits from Taiwan’s equity rally and partially repatriating funds, exerting mild pressure on the NTD.

Meanwhile, Taiwan stocks outperformed, led by heavyweight tech shares, defying broader trends and drawing market attention. After climbing 2.44% over the past two sessions, the Taiex added another 114.24 points (0.48%) to close at 24,135.50—its second-highest level ever, just below the record close of 24,390.03 set on July 11, 2024. Turnover reached around NT$427.4 billion. TSMC rose 0.43% to NT$1,180, lifting the semiconductor sector, while financial and select traditional industry stocks also advanced, creating broad-based gains.

Analysts suggest that while the NTD remains weak in the near term, the stock market’s resilience reflects sustained confidence in Taiwan’s tech sector and export outlook. If foreign investors resume buying and export-related forex flows persist, the NTD may consolidate between 29.8 and 30, awaiting clarity on global interest rates and tariff policies.

Forex traders described Monday’s "strong stocks, weak currency" dynamic as evidence of enduring capital preference for Taiwan’s markets. Though briefly pressured by a stronger U.S. dollar, solid fundamentals continue to support the equity rally.