FX.co ★ TAIEX Trades at 4-Week Low as Tech Sector Weighs

The TAIEX, Taiwan’s benchmark stock index, dropped 1,427 points, or 2.9%, to 47,199 in Thursday morning trade, reversing gains from the previous session and hitting its lowest level since September 18. The market mirrored an overnight sell-off on Wall Street, particularly in technology shares, after stronger-than-expected US inflation data intensified expectations of another Federal Reserve interest rate hike.

Sentiment was further pressured by rising oil prices, which reinforced concerns about persistent inflation and the prospect of higher-for-longer interest rates. Losses were broad-based, with most sectors trading in negative territory. The worst performers included electronic technology, energy minerals, technology services, and process industries.

Electronic technology stocks fell 3.2%, closely tracking the tech-led decline in US markets. TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the TAIEX’s total market value, slipped 1.8%. Among other major names, MediaTek declined 1.1%, Nanya Technology Corp. lost 1.5%, and Hon Precision tumbled 4.8%.