Taipei: Shares in Taiwan experienced a significant decline of over 500 points as U.S. President Donald Trump threatened tariffs on European countries opposing the sale of Greenland to Washington, leading to heavy losses on U.S. markets overnight, dealers reported. The Taiex, Taiwan Stock Exchange's benchmark index, closed down 513.62 points, or 1.62 percent, at 31,246.37, fluctuating between 31,200.76 and 31,749.14, with a turnover totaling NT$868.9 billion (US$27.45 billion).

According to Focus Taiwan, Alex Huang, an analyst at Mega International Investment Services, noted that investors were panic-selling due to the significant U.S. market losses, with the S and P 500 dropping 2.06 percent and the Nasdaq index falling 2.39 percent. Huang also pointed out that the settlement date for January futures contracts contributed to the increased selling, as foreign institutional investors held more short-position contracts.

The sell-off targeted tech stocks, with Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the total market value, losing 1.97 percent and contributing approximately 280 points to the Taiex's decline. Nanya Technology Corp. dropped 7.72 percent, ASE Technology Holding Co. decreased by 1.69 percent, and MediaTek Inc. fell 1.35 percent.

Hon Hai Precision Industry Co. saw a 2.10 percent decline, while Delta Electronics Inc. managed a slight gain of 0.44 percent. Despite widespread selling, some non-tech stocks showed resilience. China Airlines and EVA Airways gained 1.60 percent and 0.26 percent, respectively, driven by hopes of peak-season ticket sales.

Conversely, Eclat Textile Co. and Far Eastern New Century Corp. recorded losses of 1.19 percent and 1.22 percent, respectively. In the financial sector, Cathay Financial Holding Co. and Fubon Financial Holding Co. saw declines of 1.17 percent and 1.06 percent.

Huang observed that despite the losses, the Taiex remained above the 10-day moving average of 30,973 points, warning that breaching this level could lead to more severe losses. The TWSE reported that foreign institutional investors sold a net NT$44.06 billion of shares on the main board on Wednesday.