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Taiwan Stocks Face Sell-Off as Foreign Investors Exit; State Funds Step In to Support Tech Giants
Electronic Technology · Semiconductors · economic_daily · 2026-09-11
2330
Taiwan stocks tumbled nearly 1,000 points as foreign investors offloaded 89.27 billion TWD, prompting state-backed funds to intervene in semiconductor stocks.
What Happened
Foreign Sell-Off: The Taiwan stock market experienced a sharp decline yesterday as foreign investors liquidated 89.27 billion TWD in holdings, pushing the index briefly below the 46,000-point mark. This heavy selling pressure reflects broader concerns over global interest rate trends and market volatility.
State Intervention: In response to the market rout, state-backed funds, led by the eight major public banks, stepped in with 20.77 billion TWD in buying support. The intervention focused primarily on key semiconductor players such as TSMC, Alchip, and MediaTek to stabilize the index.
Divergent Institutional Moves: While foreign investors and proprietary traders significantly reduced their exposure, domestic investment trusts continued to buy for the third consecutive day, supported by inflows into high-dividend ETFs. This divergence highlights the contrasting sentiment between local institutional support and foreign capital outflows.
Future Outlook: Analysts remain cautious as the market balances strong domestic export data against global headwinds like rising oil prices and U.S. Treasury yields. Investors are now closely monitoring upcoming U.S. CPI data and Federal Reserve policy decisions to gauge the direction of the next market phase.