According to CNA (中央社), Taiwan's TAIEX plunged more than 3,700 points over three sessions before rebounding a record 3,186.45 points on July 31 to close at 43,119.75 — yet the index still ended the week down 535.09 points and down 3,006.16 points for July, while listed-company market capitalization slipped to NT$140.8481 trillion.
How did Taiwan's TAIEX swing from sharp drop to sharp rebound this week?
According to CNA (中央社), the TAIEX (Taiwan Capitalization Weighted Stock Index) fell more than 3,700 points over three consecutive sessions last week before reversing with a single-day gain of 3,186.45 points on July 31 — described as the largest single-day point gain in the index's history — closing at 43,119.75. GVM (遠見雜誌) reported the same swing, adding that heavyweight stocks including TSMC hit their daily limit-up on that session.
Despite the rebound, CNA reported the index still finished the week down a net 535.09 points, and was down 3,006.16 points for July overall. Measured from the June 23 intraday record high of 48,218.87 to the July 29 low of 39,384.85, the trading range spanned 8,834 points, per CNA.
| Milestone | Value | Date |
|---|
| 3-session decline | -3,700+ points | prior to Jul 31 |
| Record single-day rebound | +3,186.45 points | Jul 31 |
| Friday close | 43,119.75 | Jul 31 |
| Net weekly change | -535.09 points | week ending Aug 2 |
| July cumulative change | -3,006.16 points | July |
| June 23 intraday high | 48,218.87 | Jun 23 |
| July 29 low | 39,384.85 | Jul 29 |
| High-to-low range | 8,834 points | Jun 23-Jul 29 |
How did major overseas markets perform?
CNA reported that on Wall Street, Amazon jumped 15%, while Microsoft and NVIDIA each rose about 3%. The Nasdaq gained 251.68 points, or 1%, and the PHLX Semiconductor Index (SOX) edged up 8.087 points, or 0.07%. Memory chipmaker Micron fell nearly 6%, while ASML and AMD closed lower. TSMC's U.S.-listed ADR rose $0.94, or about 0.23%.
In Asia, Japan's Nikkei 225 rose 2,494.59 points, or 4.03%, to close at 64,362.02, according to CNA. South Korea's KOSPI surged 1,001.89 points, or 17.91%, to close at 6,595.45 — its largest single-day gain on record, both CNA and GVM (遠見雜誌) reported. Samsung Electronics shares jumped more than 20%, and SK Hynix surged 30% in Seoul trading. However, CNA noted SK Hynix's U.S.-listed ADR opened higher but reversed to close down more than 3.5%, which analysts said could weigh on investor confidence.
| Market/Stock | Change |
|---|
| Amazon | +15% |
| Microsoft / NVIDIA | ~+3% each |
| Nasdaq | +251.68 pts (+1%) |
| PHLX Semiconductor Index | +8.087 pts (+0.07%) |
| Micron | -6% |
| TSMC ADR | +$0.94 (+0.23%) |
| Nikkei 225 | +2,494.59 pts (+4.03%), close 64,362.02 |
| KOSPI | +1,001.89 pts (+17.91%), close 6,595.45 |
| Samsung Electronics | +20%+ |
| SK Hynix (Seoul) | +30% |
| SK Hynix ADR | -3.5%+ |
How much did Taiwan's market capitalization change this week?
Both CNA and GVM (遠見雜誌) cited Taiwan Stock Exchange data showing listed companies' combined market capitalization stood at NT$140.8481 trillion, down about NT$1.73 trillion from the prior week — a figure both outlets described as narrowly holding the NT$140 trillion threshold.
What warning signs came from futures markets?
According to CNA and GVM, TAIEX futures in the night session weakened and fell 1,077 points to close at 42,650, a move CNA said could weigh on Monday's cash-market open. Senior analyst Wang Chao-li (王兆立) said TSMC futures fell NT$74 in the night session to NT$2,361, calling it a key factor dragging the TAIEX futures lower, and said he expects the TAIEX to trade in a short-term box-range pattern.
What was the Fed's latest rate decision?
CNA and GVM both reported that the Federal Reserve (Fed) decided on July 29 to hold its policy rate at 3.50%-3.75%. Of the 12 committee members, three dissented, arguing for a 0.25-percentage-point rate hike instead.
How did foreign investors trade in July, and what comes next?
According to SinoPac Securities Investment Consulting (永豐投顧), cited by both CNA and GVM, foreign investors were net sellers of more than NT$700 billion in Taiwan stocks in July, with foreign ownership positions declining as investment trusts' holdings rose. The firm added that markets are now watching NVIDIA's earnings on August 26 for signals on whether cloud providers will raise capital-expenditure plans further.
What do analysts say about support levels and rebound potential?
Senior analyst Liu Kun-hsi (劉坤錫) said the TAIEX rebounded strongly on July 31, but trading volume remains insufficient for a "V-shaped" recovery, making the half-year moving average a key support level that should not be broken, per CNA and GVM.
Mega International Investment Services deputy general manager Huang Kuo-wei (黃國偉) said a short-term bottom appears to have formed and the rebound suggests the medium-to-long-term uptrend remains intact, with the index initially positioned to challenge the quarterly moving average at 44,089. Taishin Securities Investment Consulting general manager Huang Wen-ching (黃文清) said the index has corrected sharply and touched a short-term low near the half-year line before rebounding, but cautioned that a V-shaped reversal is unlikely in the near term.
What this means
The week's data show a market pulled in two directions at once. On the cash-market side, the TAIEX's record 3,186.45-point rebound on July 31 was large enough to lift the Friday close to 43,119.75, yet not large enough to offset the prior three-session rout of over 3,700 points — leaving the index down 535.09 points for the week and market capitalization down NT$1.73 trillion, per CNA and GVM. Overnight futures data point in the same cautious direction: TAIEX futures fell 1,077 points and TSMC futures fell NT$74, which Wang Chao-li linked directly to expectations of near-term consolidation rather than continued rally. That caution is echoed by Liu Kun-hsi's and Huang Wen-ching's shared view that a V-shaped recovery is unlikely given insufficient trading volume, even as Huang Kuo-wei sees room for the index to test the 44,089 quarterly line. Meanwhile, the backdrop combines a Fed rate hold with internal dissent, sustained foreign net selling above NT$700 billion in July, and outsized single-day gains in Korean chip stocks (KOSPI +17.91%, SK Hynix +30%) alongside a reversal in SK Hynix's ADR — a divergence analysts said bears watching ahead of NVIDIA's August 26 earnings.