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Taiwan Stocks Plunge 755 Points as Foreign Investors Pivot to Defensive Assets

Finance · Financial Conglomerates · cnyes · 2026-09-11

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The Taiwan stock market fell 755 points to close at 46,184, with foreign investors offloading nearly NT$90 billion and shifting capital into defensive sectors.

What Happened

Market Performance: The Taiwan stock market faced significant selling pressure today, with the index dropping 755.64 points to close at 46,184.85. Trading volume contracted to NT$721.9 billion as investors remained cautious amid weak performance in the electronics sector.

Institutional Activity: Total net selling by the three major institutional investors reached NT$112.37 billion, with foreign investors accounting for NT$89.27 billion of the outflow. Foreign capital shifted toward defensive sectors, including financial holdings and telecommunications, to hedge against market uncertainty.

Risk Management: Analysts suggest that the market is bracing for potential interest rate hikes following US PPI data, which could increase operational costs for businesses. This macroeconomic concern has triggered a defensive rotation in the portfolio strategies of major institutional players.

Currency Impact: The New Taiwan Dollar weakened against the US dollar, closing at 31.638, a decline of 9.0 cents. The currency recorded a weekly depreciation of 0.03%, reflecting a broader trend of investor caution ahead of key global economic data releases.

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