Taipei: Shares in Taiwan experienced significant pressure on Tuesday, with the Taiex index dipping below the 44,000-point mark before a late-session rally helped minimize the day's losses. The Taiwan Stock Exchange's benchmark index closed down 642.57 points, or 1.42 percent, at 44,737.95, fluctuating between 43,654.04 and 45,364.40 throughout the day. Trading volume reached NT$1.18 trillion (US$36.63 billion).
According to Focus Taiwan, the downward trend mirrored movements in other Asian markets, following a sharp decline in the U.S. markets, particularly the tech-heavy Nasdaq index, which fell 1.55 percent overnight. Concord Securities analyst Kerry Huang noted that the electronics sector led the initial downturn in Taiwan, influenced by escalating tensions in the Middle East. However, a recovery in the tech-led Seoul market spurred bargain hunters to purchase electronics stocks in Taiwan, prompting a late rebound.
Among the notable tech stocks, Taiwan Semiconductor Manufacturing Co. (TSMC) saw a decline of 0.82 percent, closing at NT$2,420.00 after hitting a low of NT$2,390.00. Memory chip suppliers showed resilience, with Nanya Technology Corp. rising 5.91 percent to NT$448.00 and Macronix International Co. gaining 1.09 percent to end at NT$139.50.
In contrast, United Microelectronics Corp. (UMC) dropped 1.63 percent to NT$151.00, and MediaTek Inc. fell 4.31 percent to NT$3,660.00. Other electronics sector players, including Hon Hai Precision Industry Co. and Delta Electronics Inc., also experienced declines, closing at NT$233.50 and NT$1,855.00, respectively.
Meanwhile, the petrochemical sector outperformed due to a spike in international crude oil prices amidst renewed Middle East tensions, which could lead to higher product prices. The petrochemical index rose 1.86 percent, with Formosa Plastics Corp. climbing 5.65 percent to NT$63.60 and Nan Ya Plastics Corp. increasing 5.26 percent to NT$210.00. Formosa Chemicals and Fibre Corp. and Formosa Petrochemical Corp. also saw gains.
Conversely, Shihlin Electric and Engineering Corp. and Teco Electric and Machinery Co. faced declines, closing at NT$205.00 and NT$63.60, respectively. In the financial sector, which fell by 1.05 percent, Fubon Financial Holding Co. and Cathay Financial Holding Co. both registered losses.
Huang advised investors to keep an eye on the upcoming U.S. consumer price index (CPI) data, which could provide insights into future interest rate decisions by the U.S. Federal Reserve.
The Taiwan Stock Exchange reported that foreign institutional investors sold a net NT$51.89 billion in shares on Tuesday, reflecting cautious market sentiment amid global uncertainties.