FX.co ★ TAIEX Trades at Over 2-Month Low, Set for Monthly Fall

The TAIEX, Taiwan’s benchmark stock index, tumbled 1,446 points, or 3.1%, to 44,922 around midday on Friday, deepening the previous session’s losses and mirroring a sharp slide in U.S. stock futures following disappointing earnings from major technology firms. The index fell to its lowest level since August 24, dragged down primarily by weakness in electronic technology, technology services, producer manufacturing, and process industries.

Electronic technology stocks dropped 3.6%, led by Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization — which declined 1.9%. MediaTek, Hon Hai Precision, and Delta Electronics slumped 4.6%, 9.8%, and 3%, respectively.

Technology services shares also posted steep losses, sliding 4.2%, weighed down in particular by a 5.0% drop in Wiwynn Corporation. For the week, the TAIEX was on track for a 1.1% decline, and for the month it was headed for a 6.3% loss, reversing gains from the previous month amid a broad-based sell-off in technology stocks.