TAIEX Falls to Over 3-Month Low on Tech Weakness

The TAIEX, Taiwan’s benchmark stock index, shed 359 points, or 0.8%, to close at 42,949 on Wednesday, extending losses for a fifth consecutive session and tracking a decline in US stock futures amid concerns over AI regulation following the possibility of a Democratic takeover of both chambers of Congress. The broader index touched its lowest level since July 30, mainly weighed down by losses in electronic technology stocks. The sector continued to decline, falling 1.1% amid concerns over massive spending on AI infrastructure. TSMC, the world’s largest contract chipmaker, which accounts for more than 40% of the market’s total value, dropped 1.5%. Hon Hai Precision shed 2.2%, Delta Electronics plunged 3.9%, and Unimicron shed 1.6%. Traders also anticipated the release of October inflation data on Thursday. However, easing oil prices helped limit losses as inflation concerns and expectations of interest rate hikes moderated.

The TAIEX, Taiwan’s benchmark stock index, plunged 993 points, or 2.3%, to 42,315 around noon on Wednesday, extending losses for a fifth straight session and tracking a decline in US stock futures amid concerns over AI regulation following the possibility of a Democratic takeover of both chambers of Congress. The broader index touched its lowest level since July 30, mainly weighed down by losses in electronic technology. Electronic technology shares continued to decline, falling 3.0% amid concerns over massive spending on AI infrastructure. TSMC, the world’s largest contract chipmaker, which accounts for more than 40% of the market’s total value, dropped 1.1% after falling 1.5% in the previous session. MediaTek fell 2.6%, Hon Hai Precision shed 2.2%, Delta Electronics plunged 4.7%, and Unimicron slumped 5.3%. However, easing oil prices helped limit losses as inflation concerns and expectations of interest rate hikes moderated.

The TAIEX, Taiwan’s benchmark stock index, slumped 1,613 points, or 3.6%, to close at 43,308 on Tuesday, extending losses for a fourth straight session and tracking a decline on Wall Street overnight amid continued falls in tech stocks. The broader index touched its lowest level since July 30, mainly weighed down by electronic technology stocks, which plunged 3.9% amid concerns over massive spending on AI infrastructure. TSMC, the world’s largest contract chipmaker, which accounts for more than 40% of the market’s total value, fell 1.5%. Meanwhile, MediaTek and Delta Electronics plunged by 7.4% and 6.3%, respectively. ASE Technology also slumped 8.6%, while Unimicron Technology dropped sharply by 9.5%. Monday's data also put further pressure on the index, after factory activity growth in Taiwan eased in October from a more than five-year high in September. However, easing oil prices limited the losses as inflation concerns and expectations of interest rate hikes moderated.