AI slowdown fears and Middle East tensions rattle Taiwan and Asian markets

  • Taiwan and other Asian markets fell as Middle East tensions, oil prices above $100 a barrel and warnings about frontier-AI development pressured risk assets.
  • The TAIEX dropped as much as 786 points to 45,398 before recovering part of the loss; at 10:43 a.m. it was down 341 points, or 0.74%, at 45,843.
  • Investors monitored the 46,000 level, AI infrastructure demand, OpenAI's postponed IPO plans, Federal Reserve policy and developments involving the Strait of Hormuz and Yemen.

Taiwan and other Asian markets weakened as investors reassessed AI-linked valuations after warnings from Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and xAI CEO Elon Musk about the pace and risks of frontier-model development, while escalating Middle East tensions pushed oil above $100 a barrel. The TAIEX fell as much as 786 points to 45,398, below 46,000 and its monthly moving-average support near 46,027, before buying in MediaTek, United Microelectronics and financial stocks narrowed the decline; at 10:43 a.m. it was down 341 points, or 0.74%, at 45,843, with turnover of about NT$373.7 billion, or $11.8 billion. U.S. futures also fell, with Nasdaq 100 futures down 1.2%, while Hong Kong, mainland China, Japan and South Korea declined. OpenAI ruled out an IPO in 2025, although CFO Sarah Friar said last month that the company still expected to list in 2027 or sooner. Stronger-than-expected U.S. August core CPI, Federal Reserve, Bank of Japan and Taiwan policy decisions, Treasury yields and geopolitical risks added to market uncertainty.

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