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Taiwan Stocks Plunge Nearly 800 Points Amid Geopolitical Tensions and Rate Hike Fears

Electronic Technology · Semiconductors · cnyes · 2026-09-02

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Taiwan stocks fell sharply as rising US-Iran tensions and Federal Reserve rate hike concerns weighed on investor sentiment, dragging the index below the 5-day moving average.

What Happened

Market Sell-off: Taiwan stocks faced significant selling pressure today, closing down 784 points at 46,164.72 as geopolitical tensions between the US and Iran escalated alongside persistent concerns over a potential Federal Reserve rate hike in September.

Heavyweight Drag: Major electronic stocks led the decline, with TSMC falling 55 points and MediaTek, Delta Electronics, and Hon Hai also recording losses. Delta Electronics was particularly weak, dropping over 7% during the session.

AI Sector Resilience: Despite the broader market downturn, select AI server stocks including ASRock, Wistron, and Gigabyte managed to attract buying interest, showing relative resilience amidst the prevailing risk-off sentiment.

Sector Highlights: The optical communication and thermal management sectors stood out as bright spots, with companies like Shincell and Lite-On Semiconductor hitting limit-up, while thermal solution providers like Kaori and Auras also posted solid gains.

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