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0 NewsGhana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://www.newsghana.com.gh/tsmc-rally-lifts-taiwan-above-india-in-market-rankings/Taiwan surpassed India on Monday to become the world’s fifth largest stock market by total capitalisation, as an AI-driven rally in Taiwan Semiconductor Manufacturing Company (TSMC) upended a closely watched emerging market rivalry and reshaped global equity rankings.
Bloomberg data confirmed Taiwan’s market capitalisation climbed to $4.95 trillion, edging past India’s $4.92 trillion. Taiwan now ranks directly behind the United States, mainland China, Japan and Hong Kong in global equity market size.
TSMC sits at the core of this movement. The chipmaker’s shares have rallied 49 percent this year as it has benefited from the artificial intelligence trade, in which its semiconductors hold a dominant market position. Because TSMC accounts for roughly 42 percent of the benchmark Taiwan Weighted Index (TAIEX), its gains have lifted the entire market, pushing TAIEX to an all-time intraday high of 44,097 points.
Taiwan’s financial regulator has reinforced the momentum. Last month it raised the ceiling that domestic funds can invest in a single stock to 25 percent of net assets, up from a previous limit of 10 percent, for any listed company whose index weighting exceeds 10 percent. TSMC is currently the only company that qualifies. JPMorgan Chase estimates the regulatory change could lure more than $6 billion in fresh inflows.
The contrast with India is sharpening. India’s $4.15 trillion economy remains among the fastest growing in the world and still far exceeds Taiwan’s $977 billion gross domestic product, according to International Monetary Fund (IMF) estimates. Yet its equity market has stumbled. Global funds have sold nearly $24 billion of Indian equities this year, chasing the AI boom in Taiwan and South Korea instead.
Yi Ping Liao, a fund manager at Franklin Templeton, described markets without tech hardware exposure as those that are “increasingly being overshadowed by tech hardware-heavy markets such as Taiwan and Korea.”
Analysts temper the enthusiasm with a structural concern. Taiwan’s global ranking is closely tied to the valuation trajectory of a single firm, making the market more sensitive than most to any slowdown in AI investment or disruption in semiconductor supply chains.
For now, momentum holds. Continued optimism around artificial intelligence demand, semiconductor exports and global technology spending has significantly boosted investor sentiment toward Taiwanese equities, keeping Taiwan firmly atop Asia’s technology-driven equity race.
NewsGhana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://www.newsghana.com.gh/tsmc-rally-lifts-taiwan-above-india-in-market-rankings/
