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TSMC Slips and Memory Rally Cools; Taiwan Stocks Drop Over 400 Points
Electronic Technology · Semiconductors · economic_daily · 2026-10-29
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Taiwan stocks retreated as TSMC and major heavyweight stocks weighed on the index, pushing it below the 46,600 level amid cautious market sentiment.
What Happened
Market Pullback: The Taiwan stock market faced significant selling pressure today, with heavyweight stocks like TSMC leading the decline. The index dropped over 400 points during intraday trading, retreating to the 46,600 level despite a strong lead from the U.S. semiconductor sector.
Sector Rotation: While the memory sector saw its recent gains cool off, other segments like finance, petrochemicals, and biotechnology provided some support to the market. Conversely, electronics distribution and computer equipment sectors experienced notable weakness, reflecting a cautious shift in investor sentiment.
Macroeconomic Backdrop: The Federal Reserve's decision to keep interest rates unchanged without providing clear guidance for December has left investors focused on upcoming tech earnings. Rising oil prices due to Middle East tensions and higher U.S. bond yields continue to create a challenging environment for local equities.
Investment Outlook: Analysts suggest that the market is likely to face continued volatility at high levels. Investors are advised to maintain capital flexibility, avoid excessive leverage, and focus on high-growth areas such as custom ASIC, advanced packaging, and seasonal year-end themes in traditional industries.