The market has released an optimistic interpretation regarding the U.S.-China trade situation, and Taiwan stocks celebrated on the 23rd with a surge of 845 points, marking the second-highest single-day increase in history. The index closed strong, led by TSMC (2330), which surged nearly 7%, driving electronics, finance, and traditional sectors into the green.

This wave of momentum was sparked by U.S. President Trump's recent remarks suggesting a potential reduction of the 145% tariffs on Chinese goods. Although not a complete elimination, it indicated that tariff pressures might ease, leading investors to view the U.S.-China trade war as having a potential turning point. Experts have warned against chasing after the recent highs, advocating for a cautious approach as the market remains in a high volatility phase. They advise that the announcement of chip tariff policies on May 7 will clarify whether trade tensions can ease, stabilizing market sentiments.

According to recent analyses, only a small percentage of Taiwanese chips are directly affected by the tariffs. Most semiconductors produced in Taiwan are first sent to China or Southeast Asia for further processing before being sold globally, with direct exports to the U.S. accounting for about 5%. As for advanced processes, U.S. firms often absorb costs themselves, while for mature processes, costs might be shared between importers and exporters. Despite this, experts point to hot sectors for the short term, specifically highlighting AI-related industries such as optical communications, BBU base stations, and enterprise software, which are expected to grow based on low initial bases and high growth potential.

Nevertheless, the market must remain vigilant towards potential volatility in the TWD and stock market corrections; this could trigger a chain reaction affecting funds and ETFs as well.