Good Morning World: Strong Earthquake Off Southern Philippines Kills 32, Buildings Collapse, Landslides. Taiwan Stocks See Black Monday, Down 1,568 Points

Following a sharp drop in US stocks, Taiwan's stock market experienced a Black Monday on the 8th, closing at 43,502.78 points, down 1,568.16 points (approximately 3.6%), marking the third-largest closing point drop in Taiwan stock market history. South Korea's KOSPI index briefly triggered a circuit breaker, closing down 6.43%, while the Nikkei index fell over 4%. According to the Financial Supervisory Commission, Taiwan's decline was in the middle range among Asian markets, smaller than South Korea and Japan but larger than Singapore, Hong Kong, and Shanghai (all within 2%). Institutional investors believe Taiwan's market showed relative resilience. TSMC fell NT$70 to close at NT$2,295, holding the monthly moving average, with the highest intraday odd-lot trading volume in the market. Investment consultants analyzed that the market fears an early end to the AI feast due to interest rates, and while US stocks are overheated, they are not in a bubble, and Taiwan stocks face short-term correction and consolidation.

A magnitude 7.8 earthquake struck off the coast of Mindanao Island in the southern Philippines on the morning of the 8th, killing at least 32 people and injuring over 200. A tsunami of about 1 meter was observed along the nearby coast. As of 11 a.m., 138 aftershocks ranging from magnitude 1.3 to 6.7 had occurred. General Santos City was one of the hardest-hit areas, with building collapses and damage to critical infrastructure. Japan issued a "tsunami advisory" for many areas along the Pacific coast, with over 180,000 people receiving evacuation orders. The Pacific Tsunami Warning Center stated that the tsunami threat had largely passed about five hours after the earthquake. Several Taiwanese businesspeople reported feeling strong shaking, but no casualties among Taiwanese people have been reported so far.

Vice President Hsiao Bi-khim stated during a speech at the Palau Congress on the 8th that transnational crime has become a common challenge in the Pacific region. The Ministry of Justice's Investigation Bureau is preparing to station personnel in Palau to cooperate with local law enforcement agencies in addressing transnational crime threats. Palau President Surangel Whipps Jr. stated that excluding Taiwan from the United Nations and related international organizations is a global loss and welcomed the Investigation Bureau's dispatch of personnel to assist Palau's law enforcement. Vice President Hsiao also witnessed a donation ceremony and demonstration of Taiwanese multi-functional drones on the same day, hoping to use technological cooperation to help Palau strengthen medical material transport, maritime search and rescue, and disaster prevention response capabilities, enhancing rescue resilience.

Affected by a stationary front and southwest monsoon, the Central Weather Administration initiated large-scale heavy rain operations on the afternoon of the 8th, predicting that the 9th and 10th will be the two most significant rainfall days of the coming week, with mountainous areas in central and southern Taiwan needing to be alert for localized heavy rain or above. Five mountainous districts in Kaohsiung, eight townships in Pingtung, five townships in Chiayi, and Ren'ai Township in Nantou will have work and classes suspended on the 9th. The Highway Bureau has not ruled out preemptive closures of five sections on Provincial Highways 20 and 29, and the Alishan Forest Railway also announced preemptive suspension of service on the 9th and 10th. According to the Water Resources Agency, this rainfall has brought approximately 180 million tons of water, with the Zengwen Reservoir's water storage rate slowly recovering to 13.3%.

Following the sharp drop in Taiwan stocks on the 8th, which set a record for the largest intraday point drop, the New Taiwan Dollar depreciated sharply against the US dollar, closing at NT$31.58, a significant drop of NT$0.105. Forex traders pointed out that the collapse of Taiwan stocks, large-scale capital outflows by foreign investors, renewed tensions in the Middle East, and heightened expectations of a delay in the Federal Reserve's rate cuts are all pushing the US dollar higher, putting pressure on Asian currencies. The next focus will be on whether investor panic subsides, as seen in US stock market performance. If foreign capital does not withdraw massively again, the New Taiwan Dollar should shift from a sharp depreciation to a range-bound weak pattern. On the other hand, the Iran war is fueling inflation, and experts expect the European Central Bank to raise interest rates by a quarter point this week.

As the Middle East war reaches its 100th day, an Israeli military officer stated that Iran has launched nearly 30 missiles towards Israel since the evening of the 7th. An AFP reporter in Jerusalem heard at least eight explosions on the 8th. The ongoing exchange of fire between Israel and Iran is putting pressure on an already fragile ceasefire agreement. US President Donald Trump called on both sides to stop attacking each other, stating that the new conflict would not affect US-Iran peace talks, and added that Israeli Prime Minister Benjamin Netanyahu "is not the one who can decide things." Meanwhile, the Pentagon believes Israel wiretapped senior US officials negotiating with Iran and has raised its counterintelligence threat assessment against Israel to the highest level.

Chinese Communist Party General Secretary Xi Jinping visited North Korea on the 8th for the first time in seven years, beginning a two-day state visit. The entourage includes Xi's wife, Peng Liyuan, and Politburo Standing Committee member and Director of the General Office Cai Qi. According to Xinhua News Agency, Xi stated that he would promote the further development of bilateral relations, contribute to regional and world peace, stability, and prosperity, and emphasized firm support for North Korea under Kim Jong-un's leadership. North Korean leader Kim Jong-un stated that North Korea always adheres to the "One China Principle" and firmly supports China's policies and positions in safeguarding its core interests. Observers are watching whether China is using this visit to reaffirm its influence over North Korea, which is increasingly leaning towards Russia.

Malaysian Prime Minister Anwar Ibrahim stated on the 8th that some foreigners are operating businesses after entering the country on tourist or student visas, potentially affecting employment opportunities for Malaysians. Many of them entered from China on tourist visas. Reports indicate that some operate businesses under licenses held by local Malaysians, while others register companies legally but source goods and labor from their home countries. Anwar has instructed relevant ministries and law enforcement agencies to take action against illegal commercial activities involving foreigners and to investigate whether money laundering or other issues are involved. He also called on the government to strengthen cooperation with various chambers of commerce and hawker associations to protect the survival space of local small and medium-sized enterprises.

Independent legislator Gao Chin Su-mei was indicted by the Taipei District Prosecutors Office on the 8th on charges of corruption, among others, for allegedly fraudulently claiming over NT$7.87 million in assistant fees. Her assistant, Zhang Jun-jie, was accused of fraudulently claiming over NT$9.33 million in subsidies. The prosecution indicted 24 people, including Gao, seeking sentences of over 12 years and 6 months for Gao and over 16 years for Zhang. The prosecution stated that Gao used methods such as reporting fictitious personnel and underreporting salaries to fraudulently claim over NT$7.87 million in public-funded assistant salaries, and was also involved in importing 74,400 unapproved rapid test kits. Due to her poor attitude after the crime, the prosecution requested a heavier sentence. Gao stated that she would continue to defend the rights of indigenous peoples and oversee government administration.

Japanese baseball legend "Heisei Monster" Daisuke Matsuzaka visited Taiwan to participate in the opening ceremony of the Yu Shan Cup high school baseball tournament and caught up with Taiwanese legendary pitcher Kaku Taiyuan, who also played in Japan. Matsuzaka believes Taiwanese baseball has the conditions to catch up with the US and Japan, praising the high level of Taiwanese pitchers. However, he noted that while he was impressed when facing Taiwanese teams in junior and senior high school, he did not feel the same impact at the professional level, suggesting this is a topic for Taiwan to consider. Matsuzaka shared his high school experiences during the opening ceremony and expressed hope to interview Taiwanese players in the future as a commentator or journalist. When asked about impressive players, he named Hsu Jo-hsi as having great potential and also looked forward to Lin An-ko's performance.