FX.co ★ TAIEX Hits 5-Week Low on Tech Selloff

The TAIEX, Taiwan’s benchmark stock index, tumbled 1,900 points, or 4.3%, to 43,725 in Friday morning trading, after ending nearly flat in the previous session. The drop tracked an overnight selloff on Wall Street, led by sharp declines in semiconductor stocks.

The broader index fell to its lowest level since June 10, dragged down primarily by electronic technology shares, which sank 5.0%. TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization, slid 3.9%, while MediaTek plunged 6.4%. Delta Electronics and Hon Hai Precision Industry also lost ground, declining 5.3% and 2.3%, respectively.

Sentiment was further dampened by rising oil prices, which reignited inflation concerns and reinforced expectations of additional interest rate hikes. Investors were also cautious ahead of a raft of upcoming data, including June industrial production and retail sales figures due next week.

For the week, the TAIEX is on track for a 3.6% loss, pressured by higher oil prices and a global selloff in technology stocks.