Taiwan Stocks Plunge Amid TSMC Sell-off, Recover Partially to End Down Sharply

Taiwan's stock market endured a turbulent session, with the TAIEX index experiencing dramatic swings. The market opened significantly lower, dragged down by a historic plunge in Taiwan Semiconductor Manufacturing Co. (TSMC) shares, which fell NT$135 to NT$2,230. This initial shock sent the index down 563.45 points to 44,507.49. The downturn intensified as technology, finance, and traditional sectors all saw sharp declines, pushing the index to a low of 42,376 points, breaching the monthly moving average.

However, a late recovery emerged, driven by renewed buying interest in TSMC and other popular electronics stocks, including memory and AI-related companies. This resurgence saw nearly 200 listed companies move into positive territory, helping the index rebound by 1,126 points. Despite this recovery, the TAIEX ultimately closed down 1,568.16 points, marking the third-largest single-day drop in its history. The day's trading volume reached NT$1.13 trillion.

The volatility mirrored a broader sell-off in Asian markets, with South Korea's KOSPI plunging over 8% and triggering a circuit breaker, while Japan's Nikkei 225 fell more than 2,600 points. The decline in TSMC shares also impacted its U.S.-listed American Depositary Receipts (ADRs), which dropped 6.69%. The Philadelphia Semiconductor Index also suffered a significant loss, its largest since March 2020.