Taiex Prepares for Guarded Start Amid Trade Concerns and U.S. Market Doldrums
Despite ending last session with gains, the Taiex may face headwinds at the open today due to rising global trade tensions and Nasdaq’s muted finish.
Key Highlights:
Taiex Today: Powerful Pre-Market Forecast as Global Headwinds Hit Confidence – 21 April Outlook
Taiex, Taiwan’s benchmark index, is set to reopen today, April 21, 2025, after gaining +56.30 points (+0.29%) last session to close at 19,395.03. However, a sluggish U.S. tech handover, geopolitical trade flare-ups, and soft futures action globally suggest that the Taiex may begin with guarded sentiment.
Taiex April 18 Session Recap
- Previous Close: 19,395.03
- Gain: +56.30 (+0.29%)
- Open: 19,423.98
- High: 19,499.28
- Low: 19,376.35
- 52-Week Range: 24,416.67 (High) – 17,306.97 (Low)
Despite early strength last session, the index lost momentum post-midday, showing intraday weakness that hints at possible fatigue near the 19,500 zone.
What’s Weighing on Today’s Taiex Open
🛑 U.S.–China Tariff Stand-Off
- Trade tensions intensified as the U.S. announced new blanket tariffs, prompting aggressive retaliation from Beijing.
- Taiwan’s export-driven companies—especially in electronics and semiconductors—are at risk of supply chain disruption.
💻 Nasdaq Ends Flat
- Nasdaq 100 closed at 18,258.09, up just +0.45 points (+0.002%), signaling stagnation in tech-heavy Wall Street.
- Could limit gains for Taiwan’s bellwether chipmakers like TSMC, MediaTek, and ASE Group.
🔄 Limited Global Market Tailwinds
- Gift Nifty, Dow Futures, and S&P 500 Futures show mild positive bias.
- No clear leadership across global indices suggests a hesitant Asia open.
Technical Levels to Watch for Taiex Today
| Type | Level (TWD) |
|---|---|
| Support 1 | 19,350 |
| Support 2 | 19,300 |
| Resistance 1 | 19,450 |
| Resistance 2 | 19,520 |
🔍 Expected Opening Range: 19,360–19,400
🔺 Breakout above 19,450 may see extended upside
🔻 A drop below 19,350 may invite profit-taking
Sectoral Pre-Open Outlook
📉 Semiconductors (TSMC, UMC, Realtek)
- May come under early pressure due to subdued global chip cues and profit-booking near resistance.
🛠️ Industrial Exporters (Delta, Hon Hai)
- Could react to any shift in USD/TWD and updated supply chain guidance amid tariffs.
🧪 Biotech & Healthcare
- Safe haven for cautious investors; may attract rotational flows if volatility spikes.
📊 Financials
- Likely neutral unless yield curve changes occur in U.S. markets later tonight.
Trading Strategy Before Opening Bell
For Traders:
- Avoid large positions in first 30 minutes; look for directional cues.
- Use 19,450–19,500 zone as possible fade area unless global risk-on sentiment strengthens.
For Investors:
- Continue SIPs in large-cap Taiwan chip and green energy ETFs.
- Watch announcements from China and U.S. policymakers this week.
Expert Take
“The Taiex’s gains last week were not fully backed by global sentiment. With rising trade aggression and flat U.S. tech performance, today’s open could be more of a balancing act than a breakout,” said Jenny Wang, Head of Equity Strategy at Yuanta Securities.
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