Taiwan’s stock market capitalization has hit $4.95 trillion, edging past India’s $4.92 trillion and claiming the title of the world’s fifth-largest equity market. The only countries ahead of it: the US, mainland China, Japan, and Hong Kong.
The engine behind this leap is exactly who you’d expect. Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, has watched its shares climb 49% year-to-date. TSMC now accounts for over 42% of Taiwan’s main stock index.
A reshuffling of global capital
Foreign investors have pulled roughly $24 billion from Indian equities this year, redirecting that money toward markets perceived as better positioned for the AI wave. Taiwan and South Korea have been the primary beneficiaries.
Emerging-market stocks have now risen for four consecutive days, with AI-linked chipmakers in those two countries doing most of the heavy lifting. The rally has pushed emerging-market equities to record highs.
