Taipei: Shares in Taiwan closed lower on Tuesday amid concerns over the impact of American tariffs on the job market. The decline was prompted after machine tool maker Taiwan Takisawa Technology Co. encouraged its employees to take three days off a week due to a decrease in orders, dealers reported.
According to Focus Taiwan, the old economy sector faced significant pressure as it contends with 20 percent tariffs on goods shipped to the United States, compared to 15 percent on goods from Japanese and South Korean competitors. The Taiex, Taiwan’s Stock Exchange weighted index, fell by 129.02 points, or 0.53 percent, to close at 24,353.50, fluctuating between 24,324.29 and 24,551.42 throughout the session. The turnover amounted to NT$462.85 billion (US$15.38 billion).
Mega International Investment Services analyst Alex Huang noted that the Takisawa report unsettled investors, given its status as a listed old economy company. Investors are apprehensive about the broader impact on Taiwanese machinery makers, exacerbated by the higher tariff burden and a stronger Taiwan dollar. This anxiety contributed to the old economy sector dragging down the Taiex, as investors rushed to secure gains from the previous day when the index hit a new high.
On the over-the-counter market, Takisawa shares plummeted 10 percent, the maximum daily decline, closing at NT$47.00. This selling pressure extended to other machine tool makers on the Taiwan Stock Exchange, with Hiwin Technologies Corp. falling 3.20 percent to NT$211.50, and Chieftek Precision Co. declining 2.62 percent to NT$89.20. Additionally, Eclat Textile Co. saw its stock drop 2.17 percent to NT$406.00, and Makalot Industrial Co. fell 1.88 percent to NT$261.50.
In the plastics sector, Formosa Plastics Corp. decreased by 2.97 percent to close at NT$39.20, while Nan Ya Plastics Corp. experienced an 8.86 percent decline, ending at NT$42.15. Despite the downturn, select technology giants remained stable, helping prevent further declines in the Taiex. TSMC (Taiwan Semiconductor Manufacturing Co.) rose 0.42 percent to NT$1,185.00, while United Microelectronics Corp. increased by 1.61 percent to NT$41.05.
However, not all technology stocks fared well. MediaTek Inc., a smartphone IC designer, fell 1.01 percent to NT$1,390.00, and Hon Hai Precision Industry Co., an iPhone assembler and AI maker, declined 0.95 percent to NT$208.00. Some printed circuit board stocks also retraced recent gains, with Zhen Ding Technology Holding Ltd. dropping 2.65 percent to NT$65.50, and Unimicron Technology Corp. falling 2.11 percent to NT$139.00.
The financial sector was affected as well, losing 0.51 percent. Fubon Financial Holding Co. decreased by 1.01 percent to NT$88.10, and Cathay Financial Holding Co. ended down 0.31 percent at NT$64.20. Huang remarked that the Taiex’s fall below the five-day moving average of 24,360 points was noteworthy, advising investors to monitor whether the index will return to that level or experience further losses in upcoming sessions.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$11.01 billion in shares on the market on Tuesday.