Taiwan stocks dip below 46,000 as wafer giants falter

Asian stock markets saw a volatile trading session on Friday, with major indices experiencing significant swings. Japan's Nikkei initially surged past 69,000 points, while South Korea's KOSPI fell below the 7,000-point threshold.

Taiwan's TAIEX began the day on a strong note, opening higher and climbing to over 46,400 points, buoyed by gains in memory chip manufacturers like Nanya Technology and Powerchip Semiconductor. The index was further supported by advances in sectors such as IC design, AI, and silicon intellectual property.

However, the momentum faltered as key sectors like wafer manufacturers, passive components, and electronics distributors weakened. Traditional industries including steel, rubber, and chemicals, along with financial stocks, also contributed to the downturn, causing the TAIEX to briefly dip below 46,000 points and turn negative.

The market found some support from ABF substrate manufacturers and older AI stocks, allowing the index to recover and trade with a slight gain of around 100 points. This performance mirrored global trends, where the U.S. S&P 500 reached a new record high, driven by easing inflation data and strong tech sector performance.