TAIPEI (Taiwan News) — Taiwan’s benchmark stock index fell on Tuesday as concerns over Middle East tensions weighed on global markets.
The Taiwan Stock Exchange Capitalization Weighted Index (TAIEX) fell to an intraday low of 43,654.04 points, after moving within a 1,710.36-point range during the session. It closed down 642.57 points, or 1.42%, at 44,737.95 points, according to Taiwan Index Plus.
Turnover totaled NT$1.18 trillion (US$36.6 billion). The total market capitalization of listed companies stood at NT$146.03 trillion, according to the Taiwan Stock Exchange.
The five largest index-weighted stocks, which have the greatest influence on TAIEX movements, all closed lower. TSMC fell 0.82% to NT$2,420 after reporting strong revenue results, according to Anue.
MediaTek declined 4.31% to NT$3,660. Foxconn dropped 0.42% to NT$235.5, Delta Electronics lost 1.85% to NT$1,855, and ASE fell 4.33% to NT$641.
The number of stocks with share prices above NT$1,000 stood at 46, down from a record high of 56. Several stocks that remained above the NT$1,000 threshold, including Mpi, Global Unichip, Alchip Technologies, Landmark Optoelectronics, and Keystone Microtech, hit their daily limit-downs during trading, according to CTEE.
Drone-related stocks moved against the broader market trend, supported by expectations for continued demand from defense and industrial applications. Hocheng, Chenfull International, and Asia Air reached daily limit-ups, while Aerospace Industrial Development and Thunder Tiger also posted notable gains.
South Korea’s SK hynix, one of the world’s leading memory chip makers, saw its US-listed shares decline overnight, raising concerns over the memory sector. Nanya Technology, supported by its own fundamentals, moved against the market trend to close up 5.91% at NT$448.
Silicon wafer stocks, which have recently drawn investor attention, showed mixed performance. Formosa Sumco Technology reached its daily limit-up, Sino-American Silicon Products rose 9.29%, and industry leader GlobalWafers gained 2.02%, while Wafer Works declined 1.58%.
Passive component stocks faced strong selling pressure. Holy Stone Enterprise and Nichidenbo both fell to their limit-downs, while Inpaq Technology and Ever Ohms Technology declined more than 8%.
Senior analyst Chang Chen-hao (張陳浩) said selling pressure may remain in the short term as market participants adjust their TAIEX futures positions ahead of Wednesday’s monthly settlement. TAIEX futures allow traders to take positions based on expectations for broader market movements, with monthly settlements often prompting market participants to adjust their positions, according to Yahoo Stocks.
Chang suggested a wait-and-see approach until the settlement is completed. He added that attention would also turn to TSMC’s earnings conference on Thursday, where the company is expected to provide further guidance.
Chang said the TAIEX has corrected about 4,000-5,000 points from its previous high, representing a decline of around 10%. He described the move as a normal correction within a broader uptrend and said the overall market structure remains intact.
He added that a pullback toward the quarterly moving average could present a buying opportunity and maintained his view that the TAIEX has the potential to reach a new high in October. He suggested watching sectors including third-generation semiconductors and advanced substrates during market corrections.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
