Movement Alert|iShares MSCI Taiwan ETF Rises 5.06% in Regular Trading, TSMC Kumamoto Factory Resumes Operations Easing Supply Chain Fears

Market Focus07-30

On July 30, iShares MSCI Taiwan ETF rose 5.06% in regular trading, trading at $93.37/share, with turnover of $193 million.

On the news front, TSMC confirmed that its Kumamoto JASM wafer fab has fully restored water supply, power, and safety systems following the magnitude 7.1 earthquake that struck Japan days earlier. Raw material supply has resumed and construction work restarted on July 29, with production capacity gradually returning to normal. The confirmation alleviated prior panic over supply chain disruption that had driven the ETF down more than 5% over the preceding two sessions.

Earlier, the earthquake forced emergency evacuations at the Kumamoto facility and triggered broad semiconductor sector selling, with the Philadelphia Semiconductor Index having already retreated over 20% from its highs into a technical bear market. The recovery announcement prompted capital inflows back into Taiwan-linked equities, driving the sharp rebound.

The fund generally invests at least 80% of its assets in the component securities of its underlying index, the MSCI Taiwan Index, a free float-adjusted market capitalization-weighted index designed to measure large- and mid-cap equity performance in Taiwan. The fund is non-diversified.

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