TAIPEI (Taiwan News) — Taiwan’s stock market fell Thursday as investors adjusted to the Federal Reserve’s decision to maintain interest rates and hopes for further cuts eased.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell 658.9 points to close at 33,689.68. Turnover totaled NT$845.7 billion (US$29.6 billion), according to CNA and CTEE.
TSMC fell 2.89% to NT$1,850. Delta Electronics dropped 0.68% to NT$1,455, Foxconn declined 2.38% to NT$205, and MediaTek decreased 2.89% to NT$1,680.
Printed circuit board stocks stood out, with Unimicron Technology rising 7.04% and its market value surpassing NT$1 trillion. Gold Circuit Electronics also hit the daily limit.
Energy and petrochemical shares moved higher as Middle East tensions increased concerns about energy supply. Petrochemical companies China General Plastics, Taita Chemical, Usi, and Asia Polymer all closed at limit-up.
Chemical producers also advanced, with Oriental Union Chemical, Everlight Chemical Industrial, and Yuan Jen Enterprises each finishing at their daily limits. Natural gas suppliers Shan-Loong Transportation, Shin Shin Natural Gas, and Shin Kao Gas closed at limit-up.
Thermal management stocks were among the stronger performers, with Asia Vital Components and Fositek both hitting their daily limit-up intraday and surpassing NT$2,000 to reach record highs. Gains later narrowed, though both stocks still closed more than 7% higher.
Cathay Securities Investment Trust said the US Federal Reserve’s decision to keep interest rates unchanged weighed on US equities on Wednesday and contributed to Thursday’s pullback in Taiwan. Instability in the Middle East has also raised concerns that higher energy prices may add to inflation.
The firm said the market response reflected a gap between investor expectations and the Fed’s message. Investors had anticipated further policy easing to support market confidence during geopolitical tensions, but Fed Chair Jerome Powell’s comments on controlling inflation prompted short-term funds to trim equity positions.
Senior analyst Chien Po-yi (簡伯儀) said the market in the first quarter will likely focus on theme-driven and earnings-related stocks, with sector rotation expected. He said artificial intelligence-related companies, high-dividend stocks, and firms undergoing operational turnarounds remain areas to watch, particularly smaller companies receiving support from major investors or institutional buying.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research before making investment decisions.
