Taipei: Taiwan's stock market experienced a sharp decline of more than 5 percent during Monday's early trading session, triggered by the ongoing military conflict in the Middle East, which has caused international crude oil prices to rise, dealers reported. As of 9:36 a.m., the Taiex, the benchmark index of the Taiwan Stock Exchange (TWSE), fell by 1,818.00 points, or 5.41 percent, reaching 31,781.54. The index had briefly plummeted more than 2,000 points shortly after the market opened.

According to Focus Taiwan, the surge in international crude oil prices has heightened concerns regarding the potential impact on the global economy. This development has raised worries about increased inflationary pressure, which could disrupt the U.S. Federal Reserve's plan to cut interest rates. Large-cap technology stocks were at the forefront of the Taiex's decline on Monday. Notably, Taiwan Semiconductor Manufacturing Co. (TSMC), a contract chipmaker representing over 40 percent of the market's total value, saw its shares drop by 5.29 percent to NT$1,790.00 by 9:36 a.m.

At the same time, shares of AI server maker and iPhone assembler Hon Hai Precision Industry Co. fell by 5.83 percent to NT$210.00. Additionally, Delta Electronics Inc., a company providing power management solutions, experienced a significant decrease, with its shares sliding by 9.47 percent to NT$1,195.00.