Taiwan stocks recover as MediaTek and ASE offset TSMC weakness

Taiwan's TAIEX whipsawed through a more than 1,000-point intraday range on Aug. 4 before closing down 25.75 points, or 0.06%, at 43,360.66, with turnover of NT$1.03 trillion. The index briefly turned positive during the session, rising to 43,912.77 after touching a low of 42,895.81, as a strong lead from U.S. markets supported a second straight rebound attempt but late selling pressure resurfaced. Heavyweight stocks diverged sharply. TSMC fell NT$50, or 2.11%, to NT$2,320 after dropping as low as NT$2,310, while MediaTek reversed an early surge and ended down NT$45, or 1.15%, at NT$3,865. Hon Hai slipped 1.19% and ASE Technology Holding lost 4.1%, but Delta Electronics climbed NT$40, or 2.53%, to NT$1,620 after rising as much as NT$100 intraday, helping steady the broader market. Analysts said Delta has drawn support from robust AI server power-supply demand. Sector and thematic trading showed funds rotating away from some large chip names toward AI supply-chain and optical plays. Glass shares jumped 9.94%, led by Taiwan Glass at its daily limit of NT$52.3 and China Glaze at NT$37.7, amid expectations that AI server and high-speed PCB demand will support glass fiber cloth and related capital spending. Construction stocks were the weakest group, dropping 2.02%. Co-packaged optics names including LandMark Optoelectronics, Lightel and Browave hit daily limits, while LuxNet also reached limit up and Elaser rose 7.82%. Powerchip and Largan Precision also touched their daily limits, and panel makers AUO and Innolux posted notable intraday gains. Analyst Yang Hui-yu said the 43,900 to 44,100 range remains an important resistance zone. Taiwan index futures fell 67 points in overnight trade to 43,152, and TSMC's after-hours session dropped NT$24 to NT$2,343. Yang said the Philadelphia Semiconductor Index has shown relative weakness and that Taiwan's monthly moving average has just broken below its quarterly moving average, mirroring a cautious technical setup. Despite two consecutive positive candlesticks recently, turnover has not expanded significantly, suggesting the market may continue consolidating between key moving averages unless semiconductor shares stabilize and trading volume improves.