Stock exchange in Taiwan might prolong its upward trajectory.
Taiwan and Asian Markets Set for Cautious Optimism on Monday
The Taiwan Stock Exchange (TWSE) and most Asian markets are projected to open higher on Monday, August 18, 2025, buoyed by optimism about progress toward a Russia-Ukraine peace deal and strong economic fundamentals in the region.
The TWSE is expected to rise modestly based on monthly trend forecasts, with values potentially increasing around 6.0% for the month, reflecting underlying economic growth and export strength, particularly in the AI and semiconductor sectors.
In early trading on Monday, Asian markets showed gains. Japan’s Nikkei 225 rose about 0.87%, while China, Hong Kong, New Zealand, Malaysia, and Taiwan markets increased modestly. Singapore, South Korea, and Indonesia also advanced. However, Australia’s market slipped slightly due to weakness in the mining and energy sectors despite some banking gains.
The optimism on the Russia-Ukraine peace talks and stable US market conditions, despite mixed Wall Street performance last Friday, support Asian market gains. Wall Street was led higher by the tech sector, with shares of Apple (AAPL) showing a substantial move to the upside. The Dow finished at 44,175.61, up 206.97 points or 0.47 percent, while the S&P 500 ended at 6,389.45, up 49.45 points or 0.78 percent. The NASDAQ closed at a record 21,450.02, up 207.32 points or 0.98 percent. For the week, the NASDAQ rallied 3.9 percent, the S&P 500 surged 2.4 percent, and the Dow shot up 1.4 percent.
However, uncertainty prevails over the U.S.-Russia conflict over the war with Ukraine, combined with the threat of sanctions on Russian oil exports. This uncertainty could potentially impact the Asian markets in the coming days.
In Taiwan, the TSE has rallied more than 570 points or 2.4 percent in two consecutive sessions. Key Taiwanese stocks like E Sun Financial, Fubon Financial, and First Financial saw mixed performances, with E Sun Financial collecting 0.30 percent, Fubon Financial down 0.33 percent, and First Financial losing 0.53 percent on Friday. Significant strength also emerged among banking, oil service, brokerage, and networking stocks. However, Taiwan Semiconductor Manufacturing Company sank 0.42 percent on Friday.
This suggests a cautiously optimistic start for Taiwan and Asia markets on Monday, aligned with positive global sentiments and strong economic indicators in the region. Investors are advised to monitor the situation closely, given the potential impact of the U.S.-Russia conflict on global markets.
- The rise in the Taiwan Stock Exchange (TWSE) could be driven by growth in the technology and finance industries, given the strength in the AI and semiconductor sectors, as well as positive cultural news about the potential progress in the Russia-Ukraine peace talks.
- Asian markets might experience further gains in the technology sector, mirroring the trends seen on Wall Street, as technology stocks like Apple (AAPL) performed well, potentially impacting the general-news and finance markets in Asia.
