TAIPEI (Taiwan News) — Taiwan’s stock market on Tuesday tracked overnight declines in US markets, while investors shifted funds toward non-tech sectors for stability.
The Taiwan Capitalization Weighted Stock Index (TAIEX) declined 716.26 points to 40,175.56, moving below the 40,235-point monthly moving average. Turnover totaled NT$1.88 trillion (US$59.4 billion), compared with NT$990.5 billion in the previous session, according to CNA and CTEE.
TSMC fell 1.56% to NT$2,205. Foxconn lost 1.41% to NT$245, Delta Electronics dropped 5.2% to NT$1,915, and MediaTek declined 7.21% to NT$3,155.
Memory chip stocks were among the weaker performers. Several major names, including Nanya Technology, Winbond Electronics, Macronix International, and Phison Electronics, hit the daily limit-down.
Sentiment eased after a South Korean court ruling limited the scope of a Samsung labor strike. This reduced expectations for order shifts to Taiwanese suppliers, as concerns over potential global supply chain disruptions subsided, according to UDN Money.
In addition, despite strong first-quarter earnings and an optimistic outlook extending into next year, former head of Samsung’s Device Solutions division Kyung Kye-hyun said Monday that expanded DRAM capacity from Chinese manufacturers could push memory prices into a downtrend. He projected that this could occur as early as the second half of next year, according to Newtalk.
In contrast, printed circuit board makers outperformed on rising high-end upstream material prices. Chin-Poon Industrial, Wus Printed Circuit, Gold Circuit Electronics, and Plotech hit the daily limit-up.
Zhen Ding Technology Holding and Kinsus Interconnect Technology also closed higher. PCBs serve as the foundation of electronic devices, providing the structure that hosts and connects components so they can function together, according to Stockfeel.
The financial sector provided support. Fubon Financial Holding, Cathay Financial Holding, CTBC Financial Holding, Mega Financial Holding, and KGI Financial Holding rose 1% to 2%.
Telecom stocks, also often seen as steadier performers, attracted buying interest. Chunghwa Telecom added 4% to NT$142.5, setting a record closing high, while Far EasTone Telecommunications and Taiwan Mobile also closed higher.
Institutional investors said sentiment was affected by geopolitical tensions, higher oil prices, and US Treasury yields near 4.6%, which weighed on high-valuation technology stocks. While the long-term AI trend remains in place, they said the market has entered a consolidation phase after recent gains, as trading activity and borrowing in the market have increased, according to CTEE.
Analyst Hsieh Chen-yen (謝晨彥) noted near-term risks, including the index repeatedly failing to break above the 42,000-point level and increased use of borrowed funds in the market. He added that upcoming events such as Nvidia earnings, Google conferences, and Computex could help determine whether AI-related buying interest returns.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
