News / Taiwan / economic_daily

Taiwan Stocks Tumble Over 1,300 Points; Foreign Investors Offload NT$102 Billion

Finance · Investment Banks/Brokers · economic_daily · 2026-11-05

The Taiwan Stock Exchange saw a massive sell-off today, with foreign investors dumping over NT$102 billion in shares amid concerns over market leverage and geopolitical risks.

What Happened

Market Sell-off: The Taiwan stock market faced a severe correction today, plunging 1,374.19 points to close at 41,574.72 on a turnover of NT$926.02 billion. Foreign investors were net sellers of NT$102.46 billion, marking the 10th largest single-day net sell-off in the history of the exchange.

Leverage Cleanup: Analysts suggest that beyond the negative sentiment from the Philadelphia Semiconductor Index, the sharp decline was driven by a washout of leveraged margin positions. While concerns persist regarding potential US policy shifts on AI data centers, experts believe the economic benefits of such infrastructure will prevent a total policy reversal.

Key Catalysts: Investors are closely monitoring US-Iran negotiations; a successful outcome could lead to lower oil prices and ease inflationary pressures. This would reduce the likelihood of further Fed rate hikes, potentially weakening the US dollar and encouraging foreign capital to return to Taiwan.

Foreign Activity: Foreign selling was concentrated in major ETFs and large-cap stocks, including CTBC Taiwan Income and Yuanta Taiwan Top 50. Market participants are watching for a stabilization in the market once the current margin debt cleanup concludes.

Read original