Taiwan Stocks Plummet 1,683 Points, Breaking 45,000 Threshold; MediaTek Hits Limit Down

Following a retreat in U.S. tech stocks and concerns over high valuations in AI and semiconductor sectors, the Taiwan Stock Exchange (TWSE) experienced a significant downturn today. The index broke through the 46,000 and 45,000 points thresholds, as well as the monthly moving average of 45,342 points. It hit a session low of 44,454.22, eventually closing down 1,683.5 points (3.64%) at 44,571.76. This marks the third-largest single-day point drop in history, with a transaction volume of NT$1.549 trillion, the eighth-highest on record.

The electronics sector fell by 3.91%, while the financial sector dropped 1.7%. The OTC index for small and mid-cap stocks slid by 5.59%. TSMC closed at NT$2,340, down 2.09%, with its market capitalization shrinking to NT$60.68 trillion. MediaTek hit the daily limit down, closing at NT$3,880. Other major stocks, including Delta Electronics, Hon Hai, and UMC, also saw significant declines.

The number of stocks priced above NT$1,000 has dropped to 49. As-media (the market leader) failed its ex-dividend rally and hit a limit down, alongside WinWay. Analysts from Chifa Investment Consulting and Taishin 2000 High Tech Fund attribute the volatility to Apple's price hike announcements, geopolitical tensions in the Middle East, and a technical over-extension from the yearly moving average, suggesting that short-term volatility will likely persist.