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Taiwan Stocks Plunge Over 1,600 Points Amid Currency Weakness and Foreign Sell-off
Electronic Technology · Semiconductors · economic_daily · 2026-11-03
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Taiwan's stock market saw a sharp decline as the TWD weakened, with TSMC leading the retreat while investors brace for upcoming US tech earnings.
What Happened
Market Sell-off: The Taiwan Stock Exchange experienced a significant downturn on the 3rd, closing down 1,612.6 points, or 3.59%, to finish at 43,307.54 with a turnover of NT$928.1 billion. TSMC shares fell by NT$35 to close at NT$2,295, reflecting broad-based selling pressure across the index.
Currency and Capital Flow: The depreciation of the New Taiwan Dollar by over 0.1 against the USD triggered foreign institutional selling and algorithmic stop-loss orders. The lack of follow-through buying interest exacerbated the downward trend, leading to a divergence between volume and price action.
Earnings Season Focus: Market participants are closely monitoring the upcoming earnings reports from approximately 100 S&P 500 companies, including AMD, Qualcomm, Arm, and various optical component suppliers. While short-term sentiment remains cautious due to interest rate concerns, historical data suggests a high probability of post-election market gains.
Long-term Outlook: Despite current volatility, analysts maintain that the structural growth in AI demand and cloud capital expenditure remains intact. Taiwan's critical role in the global AI supply chain provides a solid foundation for long-term investors to identify high-quality companies during market corrections.