The TAIEX, Taiwan’s benchmark stock index, dropped 1,568 points, or 3.5%, on Monday to close at 43,503, marking its third consecutive decline and its lowest level since May 22. The fall mirrored losses on Wall Street on Friday, where a selloff in technology shares dampened market sentiment. Investors also grew wary that persistently high interest rates could pressure AI-related stocks.
Risk aversion was further reinforced by escalating tensions in the Middle East, after Israel launched retaliatory strikes on Iran in response to Tehran’s attacks on northern Israel.
All sectors finished in negative territory. Electronic technology declined 3.7%, technology services tumbled 5.1%, and energy minerals slid 4.9%. TSMC, the world’s largest contract chipmaker and a heavyweight accounting for more than 40% of the market’s total capitalization, fell 3.0%.
Other notable decliners included United Microelectronics (-8.0%), ASE Technology (-6.4%), Hon Hai Precision (-5.3%), MediaTek (-5.4%), and Delta Electronics (-2.0%).
