Taiwan Stocks Hit Over 2-Month Low on Tech Selloff

The TAIEX, Taiwan’s benchmark stock index, slumped 1,512 points, or 3.5%, to 42,123 in Tuesday morning trade, down for the third consecutive session and marking its lowest level since May 21, as a global selloff in chipmakers weighed on technology heavyweights. Almost all sectors traded in the red, led by process industries, followed by electronic technology, technology services, and industrial services. Reports that a Chinese state-backed firm began producing immersion DUV lithography equipment and the debut of ChangXin Memory Technologies (CXMT) further pressured sentiment. Electronic technology plunged 3.9%, with TSMC, the world's largest contract chipmaker, accounting for more than 40% of the market's total value, falling 2.6% after being flat in the previous session. Meanwhile, MediaTek and Delta Electronics plunged 6.7% and 7.4%, respectively. Among the major memory chip suppliers, Nanya Technology Corp. slumped 9.8%, while Winbond Electronics Corp. plunged 10.0%.

The TAIEX, Taiwan’s benchmark stock index, surged 1,783 points, or 4.2%, to close at 44,233 on Tuesday, erasing losses from the previous two sessions and rebounding from its lowest level since May 22, touched a day earlier, mainly boosted by gains in electronic technology, technology services, distribution services, and producer manufacturing. The electronic technology sector rebounded, jumping 4.6% after falling 0.6% in the previous session, as traders awaited key US tech earnings for clues about the rally in AI-related stocks. TSMC, the world's largest contract chipmaker, which accounts for more than 40% of the market's total value, continued to advance, rising 3.0% after gaining 1.3% on Monday, as the company expects strong demand for AI chips. Meanwhile, MediaTek, Delta Electronics, and Hon Hai Precision Industry surged 10.0%, 8.5%, and 4.9%, respectively.

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.