Taiwan Stocks Recover from Opening Slump, Led by Memory and Component Sectors

Taiwan's stock market, the TAIEX, staged a significant recovery on Monday after a steep opening decline, driven by strong performance in the memory and passive component sectors. This rebound contrasted sharply with a widespread sell-off across other Asian markets.

The TAIEX initially fell 339.33 points, opening at 42780.42, weighed down by early losses in key technology stocks such as TSMC, Hon Hai, and Delta Electronics, as well as AI-related companies. However, the index soon turned positive, gaining nearly 300 points in morning trading.

The recovery was spearheaded by companies in the semiconductor supply chain, including欣興 (Xinxing), a manufacturer of ABF substrates, MediaTek, and chip design firms like GUC and Alchip. These sectors provided the momentum needed to reverse the early downturn.

Meanwhile, other major Asian markets faced significant losses. The South Korean KOSPI index plummeted by over 5%, triggering a circuit breaker, while Japan's Nikkei 225 index dropped more than 1300 points, falling below the 63,000 mark. This broad regional weakness followed a substantial rally in Asian markets the previous Friday.