The index dropped 1,655.96 points to close at 46,969.87, marking its sixth-largest single-day point decline. Trading turnover reached approximately NT$1.32 trillion (US$40.98 billion), reflecting intense activity during the market downturn.
Why Did Taiwan’s Stock Market Fall?
The sell-off followed the release of US inflation data showing that consumer prices rose 3.7% year-on-year in September, above the market forecast of 3.6%.
The stronger-than-expected inflation figure raised concerns that the US Federal Reserve could maintain tighter monetary policy or consider further interest-rate increases. Higher interest rates can put pressure on stock valuations, particularly in the technology sector, where investors often place a high value on expected future earnings.
Technology and Semiconductor Stocks Under Pressure
Technology shares played a major role in the market decline. Taiwan is a global hub for semiconductor manufacturing and electronics, making its stock market particularly sensitive to changes in investor sentiment toward technology companies.
Major semiconductor and hardware stocks came under pressure as investors reduced their exposure to the sector. The weakness contributed to the broader decline in the benchmark index.
Most Stocks End the Session Lower
Market breadth was significantly negative. According to Investing.com’s market report, 824 stocks declined, while 207 advanced and 88 remained unchanged.
Among the session’s strongest performers, Avision Inc. rose 9.94% to NT$17.15, while Chia Ta World Co. gained 9.90% to NT$54.40.
On the losing side, Chroma ATE fell 10%, Oriental Union Chemical Corporation dropped 10%, and Paragon Technologies declined approximately 9.99%.
Foreign Investors Add to Selling Pressure
Foreign investors were significant net sellers during the session, selling approximately NT$302.56 billion worth of shares. Proprietary dealers also recorded net sales of NT$95.82 billion, according to Taiwan market data reported by the Taipei Times.
The substantial selling contributed to the pressure on local equities and reflected investor caution amid uncertainty over the US economic outlook.
What Could Happen Next?
Investors are likely to monitor upcoming US inflation and employment data, Federal Reserve policy signals, and the outlook for global technology demand. Any further increase in interest-rate concerns could continue to influence valuations in Taiwan’s technology-heavy market.