The Taiwan Stock Exchange (TWSE) saw its benchmark Weighted Index drop by 1% on Thursday, closing at 21,783.42 points. The decline mirrored broader weakness in Asian markets as investors reacted to renewed trade tensions and slowing manufacturing data across the region. Trading volume reached NT$287.5 billion, with semiconductor and financial stocks leading the downward trend.
Tech Sector Drags Down Market Performance
Taiwan Semiconductor Manufacturing Company (TSMC), the index’s heaviest-weighted component, fell 1.2% amid concerns about weakening global chip demand. Other major tech stocks including MediaTek and United Microelectronics Corporation also posted losses between 0.8% and 1.5%. Analysts noted profit-taking activities following recent rallies, particularly in the semiconductor sector which had outperformed earlier this quarter.
Financial Stocks Under Pressure
Banking and insurance shares contributed significantly to the market decline, with Cathay Financial Holding dropping 1.3% and Fubon Financial Holding losing 1.1%. The financial sector faced selling pressure after Taiwan’s central bank maintained its cautious monetary policy stance, keeping interest rates unchanged in its latest meeting.
Foreign Investors Continue Selling Spree
Market data showed foreign institutional investors net sold NT$12.8 billion worth of Taiwanese shares, marking the third consecutive session of outflows. The selloff followed similar patterns in other Asian markets as global funds adjusted their emerging market allocations amid rising U.S. Treasury yields.
Analysts Remain Cautiously Optimistic
While acknowledging short-term volatility, several brokerages maintained their positive outlook for Taiwan’s equity market, citing strong corporate earnings and expected technology sector recovery in the second half of the year. The TWSE Weighted Index remains up 18% year-to-date, outperforming many regional peers despite Thursday’s pullback.
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