TAIPEI (Taiwan News) — Taiwan’s stock market lost the 32,000-point mark Tuesday as geopolitical tensions in the Middle East and volatile energy markets weighed on investor sentiment.
The Taiwan Capitalization Weighted Stock Index (TAIEX) dropped as much as 812 points during the session. It settled down 795.17 points at 31,862.15, marking the index’s 12th-largest single-day closing point loss, according to CNA and CTEE.
For March, the TAIEX fell 3,691.5 points, a decline of 10.42%, reflecting market reactions to ongoing Middle East tensions. Cathay Securities analyst Tsai Ming-han (蔡明翰) said that, overall, Taiwan’s market remains structurally strong, noting that AI fundamentals have not changed.
TSMC briefly turned positive in early trading but closed at the day’s low, down 1.12% at NT$1,760. Delta Electronics fell 7.07% to NT$1,380, Foxconn declined 3.35% to NT$187.5, and MediaTek dropped 1.32% to NT$1,490.
Memory stocks continued their declines after Google researchers introduced TurboQuant. The data compression method could reduce AI model memory requirements by at least six times, raising concerns about potentially lower demand for memory chips.
Nanya Technology, Elite Semiconductor Microelectronics, Macronix International, Apacer Technology, and Innodisk hit daily limit-downs. Adata Technology, Transcend Information, Silicon Power, PSMC, and Phison Electronics also posted significant declines.
The printed circuit board sector also came under pressure. Ajinomoto Build-up Film leaders Unimicron and Nan Ya PCB hit limit-downs, while Kinsus Interconnect Technology fell 9.67%.
ABF, a resin developed by Japanese firm Ajinomoto, is crucial in semiconductor manufacturing and connects chips to printed circuit boards. PCBs serve as the foundation for all electronic components, allowing signal and current transmission through copper foil circuits, according to Stockfeel.
Energy-related and petrochemical stocks retreated after recent gains. Nan Ya Plastics fell 9.21%, Formosa Chemicals and Fibre lost 7.61%, Formosa Plastics dropped 4.87%, and Formosa Petrochemical declined 2.3%.
In contrast, paper stocks remained strong on concerns over raw material shortages. Chung Hwa Pulp hit daily limit-up for the fourth consecutive session, while Baolong International rose for a fifth straight session.
Tsai noted that compared with major US indexes — the S&P 500, Dow Jones, and Nasdaq Composite — which have recently breached their annual moving averages, Taiwan’s market only recently dropped below its quarterly moving average, showing relative resilience. However, US markets still represent a source of pressure, and prolonged geopolitical tensions could trigger further declines.
Chi Far Securities Investment Consultant Vice President Lee Yung-nien (李永年) said that, from a technical perspective, US stocks may have a chance to rebound in the coming weeks. This could support Taiwan’s market.
However, current trading remains largely news-driven rather than technical. Both markets are experiencing panic selling and large-scale fund outflows, reflecting investor concerns over the Middle East conflict.
Given geopolitical uncertainty and Taiwan’s upcoming April 3 – 6 holiday period, Lee advised investors to reduce holdings and wait for greater clarity before adding positions. Overall, Tsai said Taiwan’s market remains structurally bullish in the long term, with short-term corrections likely due to geopolitical disruptions, rising oil prices, inflation concerns, and Taiwan stocks’ relatively high valuations compared with US markets.
This information is not intended as personalized financial advice. Investors should conduct their own research before making investment decisions.
