Taiwan stocks plunge as TAIEX drops more than 2,000 points intraday
The benchmark index extended losses for a fourth session as a global chip selloff, AI spending concerns and caution before the Fed decision weighed on Taiwan's technology-heavy market.
Taiwan's benchmark stock index extended its decline on Wednesday, with the TAIEX falling 1,564 points, or 3.8%, to close at 40,039, its fourth straight daily drop and lowest finish since May 20. The selloff tracked renewed weakness in global semiconductor shares after the Philadelphia Semiconductor Index slid 4.5% overnight, adding to investor concern over revenue prospects as companies continue heavy spending on AI. Technology shares led the downturn, with the electronics sector dropping 4.5% after a 5.3% fall in the previous session. TSMC, which accounts for more than 40% of Taiwan's market value, fell 2.2% after losing 3.0% a day earlier. ASE Technology Holding, Delta Electronics and MediaTek dropped 9.9%, 7.9% and 7.5%, respectively. The broader market also followed losses in U.S. stock futures ahead of the Federal Reserve's policy decision, while rising oil prices linked to escalating conflict in the Middle East added to risk aversion. The latest decline deepens a sharp retreat that had already spread from equities into foreign exchange earlier in the week, when foreign investors sold Taiwan shares heavily and the New Taiwan dollar weakened as funds moved offshore.
- Philadelphia Semiconductor Index: A U.S. stock index tracking major semiconductor companies, often used as a barometer for global chip-sector sentiment.