Cathay Financial February Survey Shows Stock Optimism Cooling Despite Confidence in AI and TSMC

Cathay Financial Holdings' monthly Economic Sentiment Survey tracks public expectations for the economy, employment and investment markets. Taiwan stocks rose in early 2026 as the outlook for the AI industry improved and TSMC reported better-than-expected results, but volatility at elevated levels also made investors more cautious. The economic benefits of the Taiwan-U.S. tariff agreement have meanwhile become an important gauge of Taiwan's export outlook and semiconductor competitiveness.

Cathay Financial's February 2026 survey showed that despite Taiwan stocks strengthening in January, increased volatility pushed the public's stock-market optimism index down to 31.5. About 48% of respondents said the Taiwan-U.S. tariff agreement would benefit Taiwan's GDP and stock market, while 41% expected it to enhance the global competitiveness of Taiwan's semiconductor industry. The findings indicate that the market remains confident in the momentum provided by AI and TSMC.