FX.co ★ TAIEX Plunges 4.3% to 2-Week Low on Tech Weakness

The TAIEX, Taiwan’s benchmark stock index, tumbled 1,953 points, or 4.3%, to 43,117 in Monday morning trading, extending its slide for a third consecutive session and hitting its lowest level since May 22. The downturn mirrored losses on Wall Street on Friday, where a selloff in technology shares dampened sentiment. Market participants were also increasingly wary that elevated interest rates could pressure AI-related stocks.

The pullback followed a bout of profit-taking after the index notched an all-time closing high last Wednesday at 46,459—its first finish above the 46,000 mark—buoyed by continued optimism over AI investment.

Selling was broad-based, with all sectors in negative territory. Electronic technology slid 5.0%, technology services sank 7.0%, and process industries dropped 6.2%. TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization, fell 2.5%. Other notable decliners included MediaTek (-6.2%), Delta Electronics (-5.4%), Hon Hai Precision (-6.5%), and ASE Technology (-8.3%).