Taiwan shares rallied sharply and TSMC's share price climbed to an all-time high, good news for investors holding the stock.

• The weighted index jumped more than 1,000 points within an hour of the open, at one point approaching the 50,000-point mark, while Taiwan index futures broke above 50,000 first.
• TSMC opened higher and extended its gains, setting a new record high, with institutional investors raising their target price to NT$3,200.
• The upward momentum came from across-the-board gains on US markets: US employment data came in weaker than expected, and the market sees a greater chance of a Federal Reserve rate cut.
• AI demand remains strong, with data centre expansion driving chip orders, and Nvidia, TSMC and Micron all viewed favourably.
• TSMC holds its investor conference next Thursday, and the market is waiting to see whether it announces price increases, which would be a signal that strong results will continue through 2027.

Outlook: Taiwan shares have a chance to challenge the 50,000-point level this week, with the fourth-quarter target even put at 53,000 points, and the outcome of the investor conference will be key.