Taiwan futures tumble as US stocks and Asian markets slide

Taiwan index futures reversed an early gain and fell sharply overnight, raising concern about the market’s opening. The futures contract dropped 522 points, or 1.11%, on the second day of the month to close at 46,679. TSMC futures also fell 17 points to 2,425.

The move followed a broad decline on Wall Street. The Dow Jones Industrial Average fell 419.02 points, or 0.79%, to 52,766.88. The Nasdaq dropped 271.12 points, or 1.03%, to 26,099.77, while the S&P 500 declined 54.67 points, or 0.71%, to 7,631.47. The Philadelphia Semiconductor Index fell 2.14%.

The report linked the market pressure to renewed US-Iran conflict and concerns that higher oil prices could fuel inflation. Investors were also weighing whether the US Federal Reserve might respond with tighter monetary policy.

The overnight reversal came after Taiwan’s stock market had surged 820.25 points in the previous session to close at 46,948.72, with trading volume reaching 1.08 trillion Taiwan dollars. IC design, silicon intellectual property, silicon photonics, passive components and semiconductor stocks led the rise, alongside gains in traditional industries and financial shares. The mini Taiwan futures contract fell 518 points to 46,683.