The US-China talks, while a positive development, raise concerns about whether a peaceful situation can be maintained, drawing investors' attention. Since President Trump declared 'Liberation Day' on April 2, the market has experienced volatility. Although the 'Trump Effect' has diminished, the appreciation of the New Taiwan Dollar continues to impact major foreign exchange industries in our country.

This week, key factors affecting the Taiwan Stock Exchange include US Treasury Secretary Yellen, who will lead the US delegation in the second round of talks with Chinese Premier He Lifeng on the 9th in London, following negotiations in Switzerland. Additionally, Boeing is set to resume deliveries of its 737 MAX aircraft to China, while Beijing has temporarily granted export permits for rare earths to three major US automakers.

Although the relationship between the US and China appears to be easing, the rapid shift in tensions between the two countries raises concern, reminding investors to keep a close eye on market dynamics despite a strong start on Monday.

Looking back at the performance of the Taiwan stock market last week, it maintained a flat pattern, with a slight drop of 13.77 points, ending at 21,660.66 points. The weekly line showed a turnaround from negative to positive, gaining 313.36 points or 1.47%, with an average daily trading volume of NT$361.485 billion.

Duarte, portfolio manager at PGIM's small-cap stock fund, noted that the positive earnings from domestic and international tech giants have provided Taiwan's stock market with additional momentum, particularly after NVIDIA reported impressive financial results and following the positive signals from major wafer manufacturers during their shareholder meetings that encouraged the tech sector to rally.

However, despite the lack of a significant increase in trading volume, Hua Nan Securities believes that the market's fluctuating at a high level shows a trend toward high-revenue stocks. Investors should pay attention to eleven stocks including MediaTek (6112), Chroma (6191), Wistron (3231), and others.

Duarte explained that Taiwan's recent economic data outperformed the global average, benefiting primarily from urgent short-term orders and AI demand. However, in the medium to long term, exchange rate fluctuations may impact corporate profits. The current rapid appreciation of the exchange rate has exceeded more than half of the prior Trump administration term, which may impact technology, finance, and traditional industries. If reflected in stock prices, this may present a long-term buying opportunity at points below long-term valuation averages, with gradual buying suggested if evaluations fall.

Regarding stock selection and operations, Duarte advises that stock picking should not be based on the overall market; rather, investors should focus on short-term rebounds in deeply depressed thematic stocks, while holding on to long-term trend stocks, aiming for long-term buying points in the second half of the year, particularly in sectors such as cloud AI, wafer manufacturing, and more.

Set news reminds you that the content is for reference only. Investors should carefully assess risks and be responsible for the investment outcomes.