AsianFin -- After several days of losses, Taiwan's stock market jumped by more than 1,600 points in early trading on Thursday after U.S. President Donald Trump paused reciprocal tariffs on Wednesday, marking the largest intraday point gain in the region's history.

Trump's decision triggered a rally in the U.S. stock market and Taiwan's stock market.

Tariffs on Taiwan will temporarily drop from 32% to 10%. As of 9:58 a.m., the Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, gained 1,610.1 points, surpassing the previous record of 920.62 points set on August 6, 2024.

The three major heavyweights hit the daily limit up in early trading. TSMC rose NT$78 (US$2.40) to NT$863, Foxconn gained NT$11 to reach NT$123.5, and MediaTek climbed NT$115 to reach NT$1,300.

Institutional investors noted that the rise in the U.S. stock market eased investor anxiety. Despite the positive momentum, caution remains as U.S. policies continue to fluctuate.