Taiwan Stocks Attempt to Recover from 2-Month Low

The TAIEX, Taiwan’s benchmark stock index, dropped 222 points, or 0.5%, to close at 42,450 on Monday, reversing morning gains, extending losses from the previous session, and lingering at its lowest level since May 22, tracking a decline on Wall Street on Friday amid a renewed selloff in tech stocks. Rising oil prices following US strikes on Iran also weighed on sentiment as inflation concerns fueled expectations of further interest rate hikes. Electronic technology, finance, and process industries mainly weighed on the index. The electronic technology sector fell 0.6% after plunging 7.5% in the previous session. Among the biggest laggards were Nan Ya Plastics (-6.3%), CTBC Financial (-1.0%), MediaTek (-0.9%), and Fubon Financial (-0.5%). However, TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, rose 1.3%, rebounding sharply from a 7.3% slump in the previous session, as the company expects strong demand for AI chips.

The TAIEX, Taiwan’s benchmark stock index, rose 152 points, or 0.4%, to 42,823 in Monday morning trade, after slumping in the previous session, recovering from its lowest level since May 22, reached on Friday, mainly boosted by gains in TSMC shares. TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, rose 2.2% after plunging 7.3% in the previous session, as the company expects strong demand for AI chips, supported by its planned investment of a further $100 billion to expand its Arizona facilities. Meanwhile, Hon Hai Precision Industry advanced 0.9%. However, electronic technology edged down 0.1%, with MediaTek and Delta Electronics falling 0.5% and 0.6%, respectively. Still, rising oil prices following US strikes on Iran capped the gains as inflation concerns fueled expectations of further interest rate hikes. A decline on Wall Street on Friday also limited gains amid a renewed selloff in tech stocks.

The TAIEX, Taiwan’s benchmark stock index, plunged 2,954 points, or 6.5%, to close at 42,671 on Friday, after being almost flat in the previous session, tracking a decline on Wall Street overnight amid a sharp selloff in semiconductor stocks. The broader index hit its lowest level since May 22, mainly weighed down by electronic technology stocks, which plunged 7.5%. TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, slumped 7.3%, as strong results failed to meet investors' lofty expectations, stoking worries over heavy spending and a weaker outlook for profitability. MediaTek and Delta Electronics plunged 8.9% and 8.7%, respectively, while ASE Technology and United Microelectronics each slumped 10.0%. Meanwhile, the health technology and technology services sectors plunged 4.7% and 7.0%, respectively. For the week, the index fell 5.9%, posting its second consecutive weekly loss amid a global tech stock selloff.