Taiwan's stock market continued to register significant gains in April as demand tied to artificial intelligence-related activity pushed the benchmark higher. The Taiwan Stock Exchange (TWSE) Index rose 22.7% month-over-month to 38,926.63, producing a year-to-date advance of 34.4%.
Market turnover has surged alongside the price rally. Average daily turnover in the second quarter to date reached NT$1.23 trillion (about $38.9 billion), an increase of 187% compared with the same period a year earlier. Trading was heavily concentrated in technology firms, which made up 79% of total turnover, while financial stocks accounted for 2% and non-tech sectors 19%.
Valuation and market size metrics also expanded. Total market capitalization climbed 18% month-over-month to NT$127 trillion (roughly $4.0 trillion) at the end of April. The split between technology and non-technology market cap stood at 82% and 18%, respectively.
Leverage in the market increased as investors tapped margin facilities. The margin loan balance rose 23% month-over-month to a record NT$641 billion, with margin trading representing 4% of turnover. Short-selling activity remained limited, with short-selling to turnover stable at 0.2% in April.
Institutional positioning showed continued conviction in Taiwan equities. Active long-only funds were overweight Taiwan by 0.95% in March, a level near recent highs, and semiconductors were the most overweighted sector within those portfolios. Exchange-traded funds focused on Taiwan experienced substantial inflows year-to-date, adding NT$1.5 trillion in assets under management and bringing outstanding ETF AUM to a new high of NT$4.7 trillion at the end of April.
Underlying economic data reflected the same strength seen in the market. Taiwan's first-quarter 2026 gross domestic product accelerated 13.7% year-over-year, the fastest pace reported since 1987, a jump attributed to robust AI-related exports. Exports for March exceeded expectations with year-over-year growth of 61.8% and reached a new monthly record of $80 billion, with technology remaining the principal driver of that surge.
Price and currency movements showed notable shifts as well. The consumer price index for April rose to 1.74% year-over-year from 1.2% in March, with energy prices climbing 10.8% year-over-year contributing to the acceleration. The Taiwan dollar strengthened by 1.0% month-over-month against the U.S. dollar, trading at 31.67 at the end of April.