TAIEX Drops 341 Points as Middle East Tensions and AI Fears Hit Taiwan
The TAIEX index fell 341 points on Monday morning as geopolitical conflict and AI sector caution drove investors toward safe assets.
The TAIEX index fell 341 points to 45,843 on Monday morning. The decline was driven by escalating Middle East tensions and cautionary remarks from AI industry leaders. The index hit an intraday low of 45,398 before partially recovering. Turnover reached approximately NT$373.7 billion during the early session.
According to GN auto markets/indices: stock index data, the 46,000-point level served as a key psychological barrier. The index breached this threshold and the monthly moving average support in early trading. Mid-session rebounds in financial and select electronics stocks helped narrow the losses. The financial sub-index rose 0.19%, bucking the broader market trend.
AI concerns pressure semiconductor heavyweights
TSMC shares dropped 1.03% to NT$2,385. Nanya Technology fell 3.5% amid continued selling pressure in the memory sector. Unimicron Technology and Nan Ya PCB both declined 2.3%. These losses in high-volume stocks contributed significantly to the index's early slide.
MediaTek and United Microelectronics reversed their losses to finish positive. This shift helped stabilize the electronics sub-index, which fell 0.7% overall. The TPEx OTC index for small and mid-cap stocks declined 0.4%. LARGAN Precision locked at its daily limit down at NT$5,995.
Oil prices spike past one hundred dollars
International oil prices exceeded the $100 per barrel mark. This surge follows the postponement of talks regarding the Strait of Hormuz. Intensifying fighting in Yemen has further heightened regional security concerns. Fund managers note that these developments are driving a broad flight to safety.
Rising energy costs have increased inflation concerns in the United States. This raises the probability of further interest rate hikes by the Federal Reserve. Markets are reassessing the growth prospects of AI-related companies in response. Institutional investors maintain a positive long-term view on the AI supply chain despite short-term volatility.
U.S. markets ended higher last week
U.S. stocks closed higher across the board last Friday. The Dow Jones Industrial Average rose 509.19 points to 52,573.29. The Nasdaq Composite gained 251.31 points to 26,333.04. The Philadelphia Semiconductor Index climbed 209.83 points. These gains occurred before the current week's geopolitical escalation.
