Taipei:Shares in Taiwan closed down on Monday, though they managed to recover from the day's lows. The market exhibited concern over volatility in the United States, particularly in light of questions surrounding extensive spending on AI infrastructure.

According to Focus Taiwan, the Taiex, Taiwan Stock Exchange's benchmark index, fell by 291.69 points, or 0.65 percent, closing at 44,920.14. It fluctuated between 44,399.10 and 45,156.17 throughout the day, with a turnover of NT$758.88 billion, down from NT$939.61 billion on Friday.

The index faced significant pressure during the early-morning session, dropping by 812.73 points to a daily low. This was largely influenced by a 2.86 percent fall on the Nasdaq index and a 7.20 percent drop on the Philadelphia Semiconductor Index the previous Friday. However, bargain hunters helped the local market recover some of its earlier losses by purchasing shares in select market laggards such as MediaTek and Hon Hai Precision Industry Co.

MediaTek's shares rose by 1.40 percent to close at NT$3,970.00, while Hon Hai increased by 2.24 percent to NT$251.00. Delta Electronics Inc. also saw gains, closing up 1.50 percent at NT$1,355.00 due to interest from bargain hunters. Additionally, shares of Nanya Technology Corp. rose by 0.44 percent to NT$456.50.

Despite these recoveries, Taiwan Semiconductor Manufacturing Co. (TSMC) did not fare as well, dropping 1.69 percent to NT$2,330.00. The petrochemical sector, however, saw a boost with Formosa Petrochemical Corp. rising 4.78 percent, among others. In contrast, the financial sector experienced declines, with Fubon Financial Holding Co. and CTBC Financial Holding Co. both closing lower.

Analyst Kevin Su from Hua Nan Securities noted a possible government-led effort to bolster large tech stocks given the Taiwan dollar's weakness against the U.S. dollar. He also mentioned the cautious investor sentiment ahead of the U.S. midterm elections. Foreign institutional investors sold a net NT$73.52 billion of shares on the main board.