Taiwan overtook the UK in stock market value as the island’s tech firms regained favor amid hopes for further de-escalation in the Iran war.
Taiwan’s market capitalisation rose to $4.14 trillion as of Wednesday, making it the world’s seventh largest, according to data compiled by Bloomberg that show the combined value of companies with a primary listing on the island. The UK’s market was valued at around $4.09 trillion.
The feat comes after the Taiex Index recouped all losses driven by the Iran war — one of the first major markets to do so — to reach a record high. Heavyweight Taiwan Semiconductor Manufacturing Co. also renewed its all-time high, buoyed by strong revenue growth that underscores its key role in the global artificial intelligence supply chain.
“Taiwan continues to be treated as an AI hardware proxy,” said Yoon Ng, head of APAC asset management growth solutions at Broadridge Financial Solutions. “As long as AI capex momentum holds, flows should remain supportive.”
While the size of Taiwan’s $977 billion economy trails the UK’s $4.3 trillion, according to International Monetary Fund’s 2026 estimates, roaring export of AI-related products is boosting growth expectations for the island.
The Taiex gauge has risen 16% so far this month. It gained as much as 0.7% on Thursday, extending its rally to an eighth straight session — the longest winning streak since 2025.
Foreigners bought a net $8.9 billion of Taiwanese shares in April, putting the market on track for its biggest monthly inflow ever after a record $28.7 billion outflow in March.
Meanwhile, the UK’s FTSE 100 Index gained less than 4% this month, amid lingering concerns over sticky inflation and interest rates that are higher than in the rest of Europe.
Still, equities in the UK are luring back investors amid geopolitical uncertainty, boosted by a significant exposure to the energy and defensive sectors. A flurry of strategists including at Barclays Plc, Citigroup Inc. and HSBC Holdings Plc are favoring the FTSE 100 either as a geopolitical hedge or as a preferred exposure in the current environment.
“The commodity-based sectors of energy and basic materials, which could benefit from elevated energy and metal prices, represent nearly a fifth of the UK market cap,” said HSBC strategists including Duncan Toms. “In 2022, the UK stood out as one of the best markets in a backdrop of global stagflation.”
A Bank of America Corp. survey in April showed the UK is the second-most favored market in Europe after Switzerland, a similar position to last month’s survey. It was the second least-preferred in February. Still, a net 16% of global fund managers are underweight British stocks, compared with 15% last month.
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