Taiwan’s benchmark stock index fell 589.33 points to 44,719.35 on Aug. 19 after briefly plunging nearly 1,000 points, breaking below 45,000 and its quarterly moving average. High-dividend ETFs (exchange-traded funds focused on dividend-paying stocks) dominated the top 10 Taiwan equity ETF gainers, highlighting their defensive appeal as safe-haven capital entered the market. FT Taiwan Sustainable High Dividend (00961.TW) rose 0.38% on the day and gained 3.24% since the start of the second half, while the TAIEX declined 3.05%. The sell-off reflected heightened Middle East tensions, higher global bond yields linked to inflation and AI infrastructure borrowing, weaker U.S. and Asian markets, and continuing uncertainty over U.S. Federal Reserve policy. Taiwan’s DGBAS (Directorate-General of Budget, Accounting and Statistics) nevertheless raised its 2026 growth forecast to 11.05%, the highest level in nearly 39 years. Taiwanese asset managers recommend reducing near-term equity exposure and gradually using high-dividend ETFs as core holdings while monitoring fundamentals and capital flows.