Morning World: Heavy Rain Alert Lifted as Reservoir Levels Stabilize; Taiwan Stock Market Faces Sharp Correction

Following intense rainfall, Premier Cho Jung-tai ordered local governments to inspect drainage systems and reservoir safety. While the weather bureau has downgraded the alert, western and eastern Taiwan remain on watch for heavy rain. The Nanhua Reservoir has reached capacity, and the Zengwen Reservoir’s storage rate has recovered to 50%. Agricultural losses are estimated at NT$31.31 million.

Taiwan’s stock market experienced a sharp decline, shedding 1,801 points amid concerns over AI and semiconductor valuations. TSMC dropped 2%, and MediaTek hit the daily limit down. Despite market volatility, Taiwan's economic outlook remains steady with the National Development Council reporting the sixth consecutive 'red' light for the business cycle, reflecting robust export and investment performance driven by AI.

Legislative tensions have emerged regarding a special budget for drone development. While the Executive Yuan emphasizes the urgency of national defense capabilities, opposition parties have deferred the bill. Simultaneously, South Korea is accelerating its own 'drone warrior' initiative, aiming to deploy 110,000 units by 2029.

EVA Air has launched a historic direct flight route between Taipei and Washington D.C., signaling strengthened economic and civilian ties. Meanwhile, the New Taipei Metro’s Sanying Line is set to begin operations on June 30, offering two months of free transit for commuters.

An investigation confirmed workplace bullying involving a former deputy representative at the Executive Yuan's Office of Trade Negotiations. The Cabinet is currently reviewing the report, with a decision expected next week. Internationally, the Batanes province in the Philippines is exploring enhanced cultural and tourism cooperation with Taiwan, while global relief efforts are underway for earthquake-stricken Venezuela.