Taiwan stocks plunge 589 points as tech selloff breaches quarterly support

Taiwan's TAIEX plunged nearly 1,000 points at the Aug. 19 open to 44,308.71 before closing down 589.33 points, or 1.3%, at 44,719.35, below 45,000 and its quarterly moving-average support. The decline followed the previous day's 548.59-point drop to 45,308.68 and a sharp global technology selloff, including a 4.98% fall in the Philadelphia Semiconductor Index, as Middle East tensions, higher oil prices, inflation concerns, U.S. Treasury yields, AI-infrastructure borrowing and uncertainty over Federal Reserve policy pressured high-valuation technology shares. Combined institutional net selling reached NT$70.85 billion, while defensive high-dividend ETFs led Taiwan equity ETF gainers: FT Taiwan Sustainable High Dividend (00961.TW) rose 0.38% on Aug. 19 and 3.24% from the start of the second half, compared with a 3.05% TAIEX decline over that period. Taiwan's DGBAS nevertheless raised its 2026 growth forecast to 11.05%, the highest in nearly 39 years.

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