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AI Trade Revives: Asia Stocks Rise on TSMC Blowout and U.S.–Taiwan Chip Pact

Upbeat U.S. labor data is keeping the dollar firm, pushing rate cuts further out.

Overview

  • Taiwan Semiconductor posted another record quarter and guided 2026 capital spending to $52–56 billion, lifting chip shares across the U.S. and Asia.
  • The U.S. and Taiwan sealed a trade deal that includes at least $250 billion of Taiwanese semiconductor investment in U.S. capacity in exchange for lower reciprocal tariffs.
  • U.S. initial jobless claims fell to 198,000 for the week ended Jan. 10, below forecasts, supporting a stronger dollar as traders trim near-term Fed cut expectations.
  • Oil prices slumped then steadied after President Trump’s tempered comments on Iran eased fears of imminent supply disruptions.
  • India’s Sensex and Nifty advanced in early trade as Infosys rallied after raising its FY26 revenue growth guidance to 3–3.5% in constant currency, even as FPIs remained net sellers and DIIs net buyers.