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Middle East Tensions and AI Hype Create Tug-of-War; Analysts Expect Short-Term Volatility for Taiwan Stocks

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Driven by the COMPUTEX Taipei trade show, Taiwan's stock market hit a new record closing high on June 3. However, escalating Middle East tensions caused US stocks to retreat. Analysts believe AI is transitioning from a thematic investment to a fundamental-driven long-term trend, keeping a bullish long-term outlook for Taiwan stocks, but expect short-term volatility due to recent gains. TSMC's shareholder meeting today is also a market focus.

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