{"id":44803,"date":"2026-01-14T18:13:10","date_gmt":"2026-01-14T10:13:10","guid":{"rendered":"https:\/\/www.phillipnova.com.sg\/?post_type=market_trends&p=44803"},"modified":"2026-01-20T18:58:37","modified_gmt":"2026-01-20T10:58:37","slug":"ai-fuels-taiwan-indexs-record-run-could-we-see-more-upside-in-the-near-term","status":"publish","type":"market_trends","link":"https:\/\/www.phillipnova.com.sg\/cn\/market_trends\/ai-fuels-taiwan-indexs-record-run-could-we-see-more-upside-in-the-near-term\/","title":{"rendered":"AI Fuels Taiwan Index’s Record Run, Could We See More Upside To Come?"},"content":{"rendered":"
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By Danish Lim, Senior Investment Analyst, Phillip Nova<\/em><\/p>\n

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The SGX FTSE Taiwan Index Futures contract tracks the FTSE Taiwan RIC Capped Index, offering exposure to roughly 130 large- and mid-cap Taiwanese stocks<\/strong>. To reduce concentration risk, the index caps any single stock at 20% of total weight<\/strong>.<\/p>\n

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Taiwanese equities have surged to record highs<\/strong>, largely fuelled by strong demand linked to artificial intelligence and semiconductors<\/strong>. In 2025, the futures contract delivered a total return of 23.88%<\/strong>, outperforming the Nasdaq 100\u2019s 21% gain<\/strong> over the same period.<\/p>\n

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While the longer-term outlook remains bullish, near-term consolidation is likely<\/strong>. Momentum indicators suggest the market is currently overbought<\/strong>, and geopolitical risks remain an important tail risk. The 14-day Relative Strength Index (RSI) is hovering around 74<\/strong>, signalling the potential for a short-term pullback.<\/p>\n

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Technically, prices could retreat toward the 123.6% Fibonacci retracement level near 2,250<\/strong>, which also aligns with the 100-day moving average<\/strong>. As long as the contract holds above this level, momentum is expected to rebuild, with upside targets at the 161.8% extension near 2,500<\/strong>, and potentially 2,600<\/strong> \u5728 176.4% extension<\/strong>. The bullish thesis remains intact unless the contract records a sustained break below the 2,250 level.<\/p>\n

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A defining feature of the index is its heavy technology exposure<\/strong>, which accounts for over 62%<\/strong> of total weight\u2014nearly double the S&P 500\u2019s tech allocation. Major constituents include TSMC<\/strong>, MediaTek<\/strong>\uff0c \u548c Hon Hai Precision Industry (Foxconn)<\/strong>.<\/p>\n

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From a tactical standpoint, TSMC\u2019s weighting<\/strong> is a key consideration. As the world\u2019s leading semiconductor foundry and a critical supplier to companies like Apple, Nvidia, AMD, and Sony, TSMC is widely viewed as a proxy for global AI infrastructure spending<\/strong>. While TSMC represents about 43%<\/strong> of the uncapped FTSE Taiwan Index, its weight is limited to around 20%<\/strong> in the capped version. This cap helps reduce concentration risk, making the FTSE Taiwan RIC Capped Index\u2014and its futures contract\u2014more diversified and potentially less volatile<\/strong>.<\/p>\n

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Trade the SGX FTSE Taiwan Index Futures (TWN) at just $1.38 now!<\/strong><\/h3>\n

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\u70b9\u51fb \u7acb\u5373\u5f00\u6237\u3002<\/a> to learn more about our exclusive SGX FTSE Taiwan Index Futures (TWN) promotion now!<\/p>\n

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