The Taiwanese stock market is experiencing fluctuations due to the significant appreciation of the New Taiwan Dollar, with the weighted index falling by 10.4 points to close at 20,522.59 points, representing a drop of 0.05%. The trading volume decreased to NT$302.9 billion. Meanwhile, the OTC index rose by 2.03 points to close at 221.42 points, reflecting a shift in market funds towards domestic stocks, with a transaction value of about NT$86 billion.

Despite the sudden rise of the NT dollar yesterday, today sees it pausing, creating pressure on export-oriented companies. Additionally, uncertainty regarding semiconductor tariffs has led to reduced buying activity in the afternoon, with a prevailing wait-and-see atmosphere in the market.

Key stocks remain in focus, with Taiwan Semiconductor Manufacturing Company (TSMC) closing down 18 NT dollars at NT$920, a decline of 1.91%. MediaTek also saw a decrease, closing at NT$1,280, down 15 NT dollars or 1.15%. Conversely, Hon Hai Precision Industry (Foxconn) stabilized and closed up 3.5 NT dollars at NT$146, gaining 2.45%. Quanta Computer also maintained support, closing at NT$254 with an increase of 7.5 NT dollars or 3.04%.

Performance from mid-small caps was noteworthy, particularly within the airline and travel sectors, supported by the high value of the NT dollar. EVA Air soared 2.2 NT dollars to close at NT$43.35, an increase of 5.34%; Wistron finished at NT$2,125, rising by 85 NT dollars or 4.16%, with Winstron also gaining 5.5 NT dollars to close at NT$109, reflecting an influx of capital into tourism-related themes.

Market experts caution that the direct correlation between the appreciation of the NT dollar and outbound tourism is limited, suggesting that related sectors might only be experiencing a short-term boost. Analyst Rong Yishen from Inspire Investment believes that the rapid rise of the NT dollar after not breaking through 30 may continue to pose challenges for traditional industries and smaller export-oriented companies, compounded with the uncertainty of US semiconductor tariffs. However, the sustained appreciation of the NT dollar may provide an opportunity for hot money to flow into the Taiwanese stock market, particularly in key stocks, although there remains significant pressure above the 21,000 index level.

Overall, the market is waiting for final decisions on the US-China tariff negotiations, with continued pressure on large-cap stocks. However, domestic stocks and themed individual stocks may have opportunities to continue attracting capital.