TAIPEI (Taiwan News) — Taiwan’s stock market closed lower on Friday as major US indexes declined on uncertainty about a possible Federal Reserve rate cut in December.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell 506.06 points to 27,397.50, slipping below the 27,400-point mark. Turnover totaled NT$588 billion (US$19.2 billion), down from NT$657 billion in the previous session, according to CNA and CTEE.
The TAIEX lost 253.91 points for the week, marking a second straight weekly decline.
Large-cap technology stocks weighed on the broader market. TSMC declined 2.05% to NT$1,430, Foxconn dropped 4.37% to NT$241, MediaTek eased 1.2% to NT$1,230, and Delta Electronics ended 3.76% lower at NT$922.
Automaker Yulon Motor reached the daily limit for a third consecutive session, supported by expanded cooperation with Foxconn and steady demand for its Luxgen models.
Recently, strong memory stock prices faced profit-taking, with Transcend Information falling by more than 9%. Nanya Technology, Winbond Electronics, Adata Technology, and Macronix also closed lower.
Passive component shares were mixed as funds continued to shift from large-cap to mid- and small-cap stocks. Yageo and Walsin Technology both weakened during the session, finishing more than 4% lower.
In contrast, Honey Hope Honesty and King Core Electronics extended their limit-up momentum, while Kaimei Electric remained firm after an early limit-up. Prosperity Dielectrics pared earlier gains to close up 0.44%.
Defense-related stocks saw buying interest amid a pullback in major tech names. Twinehead International closed at the daily limit after reporting record third-quarter earnings and expanding its unmanned vehicle business.
Optics supplier Kinko Optical also finished at the daily limit after October revenue nearly doubled from a year earlier.
Biopharma shares were mixed. Bora Pharmaceuticals fell more than 9% after reporting its weakest quarterly earnings per share in three years, while Adimmune, EirGenix, and Foresee Pharmaceuticals all closed at the daily limit.
Traditional industry shares remained relatively steady throughout the session, with textile, paper, automotive, and chemical stocks maintaining firm trade.
Mega International Investment Services Vice President Huang Kuo-wei (黃國偉) said the US market’s decline, renewed debate over whether artificial intelligence stocks are overvalued, and ongoing uncertainty about US monetary policy have all weighed on sentiment.
Earlier gains in the US and Taiwan markets were supported by expectations of abundant liquidity and stronger AI valuations. Expectations may ease if rate cuts fall short, he said.
Analysts noted that while Taiwan shares have moved in line with global markets, traditional industries have offered relatively stable performance. Textile and paper stocks continue to serve as short-term havens, according to CTEE.
Huang said the market’s substantial gains in recent months and a lack of new positive catalysts remain key headwinds. Strong earnings may not necessarily support AI stocks that have already risen significantly, he added.
Although the TAIEX slipped below its monthly moving average on Friday, he said this does not suggest a continued steep decline, but it does point to a longer consolidation phase. The next technical support level is near the quarterly moving average at around 26,226 points.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
