Taipei: Shares in Taiwan faced pressure on Monday as investors awaited developments on the “reciprocal tariffs” to be imposed by the United States. The 90-day pause on these tariffs is set to end on July 9, creating a cautious market sentiment among investors, dealers reported.
According to Focus Taiwan, the Taiex, Taiwan’s weighted index on the Taiwan Stock Exchange (TWSE), closed down 118.78 points or 0.53 percent, at 22,428.72. The index moved between 22,294.11 and 22,550.50 throughout the day, with a total turnover of NT$260.0 billion (US$8.97 billion).
U.S. President Donald Trump announced over the weekend that letters would be sent to the first batch of 10-12 countries on Monday, notifying them of the “reciprocal tariffs” they will face. This announcement indicated that the 90-day pause would not be extended, adding to the market’s uncertainty.
Hua Nan Securities analyst Kevin Su noted that investors are becoming increasingly nervous due to the lack of information on tariff negotiations between the U.S. and Taiwan. The electronics sector, a key component of the Taiex, failed to recover from Friday’s downturn, contributing to the overall market decline.
The electronics sector saw a loss of 0.95 percent, with Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted local stock, falling 0.46 percent to NT$1,080.00. TSMC managed to recoup some losses after last-ditch buying efforts, according to Su.
Other semiconductor stocks such as ASE Technology Holding Co. and MediaTek Inc. also experienced declines, while companies like Delta Electronics Inc. and Quanta Computer Inc. saw their shares fall as well. Hon Hai Precision Industry Co., known for assembling iPhones and supplying AI servers, ended the day unchanged.
Financial stocks, however, showed resilience, with the financial index rising 0.94 percent. Shares of Fubon Financial Holding Co. and CTBC Financial Holding Co. saw gains as the U.S. dollar rebounded against the Taiwan dollar, potentially reducing foreign exchange losses for financial firms.
In contrast, old economy industries displayed mixed results. Formosa Plastics Corp. and Nan Ya Plastics Corp. experienced declines, as did Fortune Electric Co. and Shihlin Electric and Engineering Corp. On the other hand, geopolitical tensions boosted “military concept” stocks such as drone maker Thunder Tiger Corp. and Lungteh Shipbuilding Co.
Kevin Su advised investors to monitor upcoming June sales reports, which could reveal the impact of the Taiwan dollar’s recent rapid appreciation. TSMC is scheduled to release its sales figures on Thursday.
According to the TWSE, foreign institutional investors sold a net NT$5.79 billion worth of shares on the main board on Monday.