Taiwan Stocks Rally Nearly 5% as TSMC Leads Semiconductor Gains

Taiwan's weighted stock index rose nearly 5% Monday as semiconductor shares led a rebound across parts of East Asia, lifting a key chip-market gauge after last week's sharp selloff in U.S. technology and artificial intelligence stocks.

The index reached an intraday gain of 6.6%, its strongest one-day advance since July, but ended well below that peak. TSMC, whose weighting is nearly 40% of the index, rose more than 7% in early trading, helping semiconductor shares lead East Asian markets.

Japan's Nikkei 225 added 2.33%, or 1,340.73 points, to finish at 58,775.50. South Korea's KOSPI fell 0.79%, or 39.91 points, closing at 5,019.78. The contrasting closes left regional trading mixed despite gains in Taiwan and Japan.

Last week's record selloff in U.S. tech and AI stocks erased about $3 trillion in market value at its peak, while investors returned to technology shares in some Asian markets Monday. Selling pressure across Asian shares had eased from the prior week's rout.