Taiwan’s TAIEX closed at 47,719 on Monday, gaining 1.1% and reaching its highest level since the index’s record peak in June. The advance extended the benchmark’s winning streak to four sessions, but the scale of the move raises a more complicated question: are investors pricing in a genuine improvement in US-China relations, or simply positioning ahead of a politically sensitive event that could quickly unsettle markets?
Technology stocks led the rally. The electronic technology sector rose 1.4%, while MediaTek jumped 6.4%, Delta Electronics climbed 8.1%, and ASE Technology Holding gained 3.9%. TSMC added 0.8%, a comparatively modest increase for the company that accounts for more than 40% of the TAIEX’s total market value. The pattern suggests that investors remain heavily focused on artificial intelligence, advanced chips, data infrastructure, and the companies expected to benefit from sustained global technology demand.
The immediate catalyst was optimism surrounding the September 24 meeting between US President Donald Trump and Chinese President Xi Jinping in Washington. Both governments are expected to discuss trade, tariffs, Taiwan, artificial intelligence, and broader security concerns. Recent talks between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng have encouraged hopes that the two sides may preserve a fragile trade truce, although the Taiwan issue could make any durable breakthrough difficult. Markets appear willing to reward cooperation before the leaders have demonstrated it.
The rally also rests on stronger economic foundations than summit headlines alone. Taiwan’s export orders were being closely watched after July’s powerful performance, with expectations that artificial intelligence, high-performance computing, cloud services, and seasonal consumer electronics demand would keep orders elevated. Across Asia, technology shares benefited from improving confidence in the semiconductor cycle, while the People’s Bank of China left its one-year loan prime rate unchanged at 3% for the sixteenth consecutive month. The more revealing test may come after the summit, when investors must decide whether earnings and export data can justify valuations built partly on political optimism.
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