The TAIEX, Taiwan’s benchmark stock index, fell 577 points, or 1.6%, to 37,298 in Thursday morning trading, as investors took profits after the gauge notched a second consecutive session of record highs, driven by optimism over AI infrastructure development. Market participants were also cautious ahead of a batch of key economic releases due later in the day, including industrial production, retail sales, and the unemployment rate.
Overnight gains on Wall Street helped limit further losses after US President Trump extended a ceasefire with Iran, providing some support to sentiment. Still, transportation shares were a major drag on the index, with notable declines in Evergreen Marine (-1.0%), Wan Hai Lines (-0.8%), and EVA Airways Corp. (-3.7%).
Several other stocks also retreated sharply, including Lotes and Swancor Advanced Materials, each tumbling 10%. In contrast, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) — which represents more than 40% of the market’s total capitalization — edged up 0.7%, offering a measure of resilience to the broader index.