(Bloomberg) -- Foreign investors net bought NT$120 billion ($4 billion) worth of Taiwanese stocks last week, the most since 2005, Bloomberg data shows. Net purchases last Monday helped push the index into bull market territory. Slower Federal Reserve rate hikes and optimism of a cyclical recovery for tech, in particular semiconductors, are driving the buoyant market sentiment. Still, it remains to be seen if the enthusiasm will last as the Taiwan dollar may weaken amid mounting tensions between Washington and Beijing. Much of the index’s advance has been spurred by Taiwan Semiconductor Manufacturing Co., which accounts for 29% of the tech-heavy market.

--With assistance from Betty Hou.

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