Second-quarter earnings across Taiwan's traditional-industry sector generally beat expectations — good news for investors holding petrochemical, shipping and apparel stocks.

• War in the Middle East pushed up oil prices and petrochemical quotes, and with customers restocking, earnings at Formosa Plastics, Formosa Chemicals & Fibre and Formosa Petrochemical improved markedly.
• With raw-material supply restored after the reopening of the Strait of Hormuz, third-quarter petrochemical revenue is expected to grow both quarter-on-quarter and year-on-year.
• The United States adjusted tariffs on various countries to 10% for a 150-day window, and the rush to ship before the deadline lifted container freight rates, though high oil prices ate into carriers' profits.
• Demand for coal, grain and steel has held up dry bulk freight rates, with U-Ming Marine Transport and Wisdom Marine the most direct beneficiaries.
• Apparel is entering its traditional peak season with customer inventories running low, so Eclat Textile, Makalot Industrial and Roo Hsing Global are expected to receive restocking orders, though rising costs continue to squeeze margins.

Outlook: The third quarter marks the peak of the traditional-industry high season. In the fourth quarter, petrochemicals enter the gasoline off-season and apparel faces uncertainty from Amazon's adjustments to its Asian warehousing, so revenue momentum may weaken.