Taiwan's Taiex plunges over 1,600 points as tech shares tumble on Fed rate fears
Taiwan's main stock index fell more than 1,600 points, its sixth-steepest daily drop, as tech stocks slumped amid concerns over a possible Fed rate hike after higher US inflation data.
On Thursday, Taiwan’s benchmark Taiex index dropped 1,655.96 points, or 3.41%, ending at 46,969.87, the sixth-largest point decline on record. The fall was led by a broad sell-off in technology stocks after US September CPI data came in at 3.7%, above expectations, prompting worries about a more hawkish Federal Reserve. Major chip makers such as TSMC fell 2.01%, ASE Technology plunged 10%, and MediaTek slid nearly 7%, while other tech firms like Delta Electronics and Hon Hai also lost ground.
Trading volume surged to NT$1.32 trillion, and foreign institutional investors net-sold NT$302.56 billion of shares. In contrast, defensive names in telecoms and finance rose, with Chunghwa Telecom up 2.69% and E. Sun Financial Holding gaining 3.17%. Analysts noted the index slipped below its 20-day moving average, suggesting further weakness may follow.
Why it matters
The drop highlights how US inflation data can quickly affect Asian tech-heavy markets and investor sentiment.
How this story developed
- Oct 2 Seoul market slips modestly as US stocks close higher
- Oct 8 The market recorded a third straight day of losses.
- Oct 13 South Korean equities fell over 3% as Asian markets slipped, mirroring a 2.7% drop in a US semiconductor index and fading AI optimism.
- Oct 13 The decline continued a multi‑day slide in the index.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
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