Encouraged by positive developments in the US-China trade negotiations, major US indices have mostly closed in the green, with the Philadelphia semiconductor index rising by 1.96%. This creates a positive atmosphere for today's opening of the Taiwan stock market. The Taiwan index futures rose by 127 points overnight, while TSMC futures increased by NT$5 after trading, indicating that the Taiwan stock market is likely to continue its rebound from last week.

According to analysis, the weighted index closed at 21,790 points last Friday, climbing 129 points, a gain of 0.6%. The trading volume reached NT$300 billion, and the OTC index rose by 0.26% simultaneously, suggesting strong performance in small and mid-cap stocks.

Overall, the three major institutional investors accumulated a net buy of NT$3.48 billion, with domestic investment trusts buying for two consecutive days, leading to a net purchase of NT$3.43 billion, becoming a key support for the market. However, foreign investors turned to a slight net sell of NT$70 million, indicating that international capital remains cautious.

In terms of industry, electronics stocks continue to dominate the market, and they are expected to maintain this upward momentum today, thanks to the rise in US semiconductor stocks. Although some financial stocks have seen profit-taking, their overall performance remains stable. Shipping and steel stocks show mixed performances, with funds cautiously shifting towards observation.

TSMC closed up NT$10 at NT$1,005, leading the market in terms of trading value and contributing about 82 points to the index's rise. With futures trading gaining NT$5, today is expected to attract pressing buying in the market.

As the market anticipates progress in the US-China talks and awaits upcoming inflation data, analysts predict that Taiwan's stocks may challenge the 22,000-point barrier in the short term. Today's market focus includes TSMC, the semiconductor supply chain, AI servers, CoWoS, robotics, CPO, military industry, and shipping sectors as key indicators for investment.

Additionally, despite the favorable news from the US-China trade negotiations, Commerce Secretary Gina Raimondo stated the discussions were productive, and Treasury Secretary Janet Yellen noted a successful meeting; however, performance among US tech stocks is showing divergence. Apple’s annual WWDC event showcased iOS 26 and watchOS, but there was no significant AI advancement, resulting in Apple’s stock price remaining subdued, potentially affecting related supply chains.

While Taiwan stocks reflect the positive news from the US markets, caution is advised regarding profit-taking pressures on stocks that have risen sharply in the short term. With international positive news and a strong focus on electronics, there remains a chance for Taiwan stocks to challenge new highs; however, foreign investor attitudes are still unclear. With the upcoming release of the CPI and FOMC meeting results in the US, investors are advised to focus on range trading to avoid short-term high-risk chasing, concentrating on fundamentally sound electronic blue chips and policy-benefitting concept stocks.