TAIPEI (Taiwan News) — Taiwan's stock market fell Thursday as US tech stocks declined following reports that President-elect Donald Trump may consider declaring a national economic emergency to implement new tariffs.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed down 326.2 points at 23,081.13, compared to a loss of 243.94 points Wednesday. Turnover totaled NT$381.91 billion (US$11.6 billion), per CNA.
Losses were seen across electronics heavyweights and AI concept stocks, with traditional industry stocks such as shipping and plastics experiencing steep declines. Shipping stocks dropped 4.54%, impacted by the avoidance of a second US port strike.
The International Longshoremen's Association staged a three-day strike last October over a six-year master contract dispute. The strike impacted 14 major ports, causing a spike in shipping costs and significant cargo delays, according to BBC.
The event was the first large-scale shutdown of its kind in nearly 50 years. On Thursday, the ILA announced it had agreed with the United States Maritime Alliance to continue operating under the existing contract, successfully preventing a coast-wide strike scheduled for Jan. 15.
TSMC closed slightly lower by 0.45% at NT$1,100 (US$33.42), while Foxconn fell 2.66%, MediaTek 2.04%, Delta Electronics 2.45%, and ASE Technology Holding 3.21%. AI server concept stocks also dropped, with Quanta Computer down 2.37%, Wiwynn 5.08%, and Wistron 2.79%.
Taishin 2000 High Technology Equity Fund manager Shen Chien-hung (沈建宏) noted that the market is gradually absorbing the anticipated impact of Trump’s policies. He added that the US economy remains strong, so the Federal Reserve may opt for smaller-than-expected interest rate cuts.
Interest rate cuts generally have a positive effect on the stock market. Lower rates encourage businesses to increase investment, while reduced borrowing costs support higher corporate profits, often leading to rising stock prices, per CW.
Shen highlighted promising earnings growth among Taiwanese companies, which could support medium to long-term market momentum. He also advised investors to monitor stocks tied to the Consumer Electronics Show, Mobile World Congress, AI, optical communication, biotech, upstream semiconductor materials, low-Earth orbit satellites, high-dividend stocks, electric vehicles, and automotive electronics.