Strait of Hormuz Reopens, Oil Prices Drop; Investment Advisors: Taiwan Stocks Aim Higher on Foreign Capital Replenishment
Key facts
- Strait of Hormuz Reopens, Oil Prices Drop; Investment Advisors: Taiwan Stocks Aim Higher on Foreign Capital Replenishment
- The reopening of the Strait of Hormuz led to a drop in global oil prices and a surge in US stocks. Investment advisors predict that Taiwan stocks will see significant gains next week, fueled by foreign capital buying and strong AI demand following TSMC's earnings call.
- Source: PR Times
- Date: April 18, 2026
Direct answer
The reopening of the Strait of Hormuz led to a drop in global oil prices and a surge in US stocks. Investment advisors predict that Taiwan stocks will see significant gains next week, fueled by foreign capital buying and strong AI demand following TSMC's earnings call.
- Citation
- Strait of Hormuz Reopens, Oil Prices Drop; Investment Advisors: Taiwan Stocks Aim Higher on Foreign Capital Replenishment (April 18, 2026), PR Times
- Source
- PR Times
- Date
- April 18, 2026
The reopening of the Strait of Hormuz led to a drop in global oil prices and a surge in US stocks. Investment advisors predict that Taiwan stocks will see significant gains next week, fueled by foreign capital buying and strong AI demand following TSMC's earnings call.
📋 Article Processing Timeline
- 📰 Published: April 18, 2026 at 15:28
- 🔍 Collected: April 18, 2026 at 16:01 (33 min after Published)
- 🤖 AI Analyzed: April 18, 2026 at 21:22 (5h 20m after Collected)
Central News
(Central News Agency, reporter Chiang Ming-yen, Taipei, 18th) Following the reopening of the Strait of Hormuz, international oil prices plummeted, US stocks surged, and Taiwan index futures soared 664 points in after-hours trading. Investment advisory firms are optimistic that this will have a strong stimulating effect on Taiwan stocks next week, anticipating a wave of foreign capital short covering to inject liquidity. Coupled with the positive news from TSMC's earnings call and robust growth in the AI industry, Taiwan stocks are poised to hit new highs.
Iran announced the reopening of the Strait of Hormuz, leading to a crash in oil prices and a rally in US stocks, with the Nasdaq and S&P 500 indexes setting new record highs.
The Dow Jones Industrial Average finished up 868.71 points, or 1.79%, at 49,447.43. The S&P 500 gained 84.78 points, or 1.2%, to close at 7,126.06. The tech-heavy Nasdaq Composite rose 365.78 points, or 1.52%. The Philadelphia Semiconductor Index gained 226.537 points, or 2.43%.
The easing of the US-Iran conflict, combined with the momentum from TSMC's earnings call, pushed the Taiwan stock market to close above the 37,000 mark on the 16th, an all-time high. Although TSMC's dip on the 17th dragged the broader market down to a lower close, Taiwan stocks still surged 1,386.51 points or 3.91% for the week, with the main board index closing at 36,804.34 points.
Taiwan index futures jumped 664 points in after-hours trading to close at 37,742 points, up 1.79%.
Huang Wen-ching, vice president of Taishin Securities Investment Advisory, stated that the US stock market reaching new highs, alongside the simultaneous surge in Taiwan index futures during the night session, provides a clear stimulus for Taiwan stocks next Monday. A wave of foreign capital buying is expected to further boost market liquidity, supporting Taiwan stocks to reach new highs.
Huang pointed out that since the escalation of the US-Iran conflict, foreign investors had aggressively sold over NT$1 trillion worth of Taiwan stocks. However, they began covering their positions in early April, and recently the trend has shown more buying than selling. If oil prices enter a downward trend, easing market fears of inflation, the likelihood of a Fed rate cut in the second half of the year will increase, providing positive support for global stock markets.
Furthermore, Huang added that TSMC's earnings call released an outlook that exceeded market expectations. The explosive, continuous growth in AI demand serves as a vital engine pushing Taiwan stocks higher. The market broadly interprets that the worst of the Middle East situation is over, but since differences remain between the US and Iran, whether a ceasefire agreement can ultimately be reached requires continued observation.
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FAQ
What was the immediate impact of Iran announcing the reopening of the Strait of Hormuz?
The reopening of the Strait of Hormuz led to a drop in international oil prices and a rally in US stocks.
How many points did the Dow Jones Industrial Average finish up, and at what value?
The Dow Jones Industrial Average finished up 868.71 points, or 1.79%, to close at 49,447.43.
By how many points did the Taiwan stock market main board index surge over the week?
The main board index of Taiwan stocks surged 1,386.51 points, or 3.91%, to close at 36,804.34 points.
What was the closing index and percentage increase of the Taiwan index futures in after-hours trading?
The Taiwan index futures jumped 664 points, or 1.79%, to close at 37,742 points in after-hours trading.
Who is Huang Wen-ching and what is his professional title mentioned in the article?
Huang Wen-ching is the vice president of Taishin Securities Investment Advisory.