The TAIEX, Taiwan’s benchmark stock index, tumbled 993 points, or 2.3%, to 42,315 around noon on Wednesday, extending its losing streak to a fifth consecutive session. The decline mirrored weakness in US stock futures, as investors grew cautious over prospects for tighter AI regulation amid the possibility of the Democratic Party gaining control of both chambers of Congress.
The broader index sank to its lowest level since July 30, dragged down primarily by electronic technology stocks. The sector fell 3.0%, pressured by mounting concerns over heavy capital expenditures required for AI infrastructure.
TSMC, the world’s largest contract chipmaker and a bellwether that represents more than 40% of the local market’s total capitalization, slipped 1.1% after a 1.5% decline in the previous session. Among other major tech names, MediaTek lost 2.6%, Hon Hai Precision retreated 2.2%, Delta Electronics dropped 4.7%, and Unimicron plunged 5.3%.
On the upside, easing oil prices helped cushion the overall market, as moderating inflation worries tempered expectations of further interest rate hikes.
