News / Taiwan / cnyes

Taiwan Stocks Plunge Over 500 Points as Oil Prices Surge Past $100

Electronic Technology · Semiconductors · cnyes · 2026-09-10

Escalating US-Iran tensions have pushed oil prices above $100, fueling rate hike fears and dragging the Taiwan index below the 47,000-point mark.

What Happened

Geopolitical Tensions: Escalating tensions between the United States and Iran have pushed international oil prices above $100 per barrel for the first time since July. This surge has heightened market concerns regarding potential Federal Reserve interest rate hikes, leading to a broader sell-off in US markets and a subsequent decline in Taiwan stocks.

Market Downturn: The Taiwan stock market opened lower and continued to slide, falling over 500 points during the session. The index breached the 47,000-point threshold and dropped below its 5-day moving average, with trading volume expected to shrink to approximately NT$740 billion as investor sentiment soured.

Sector Performance: Heavyweight stocks faced significant pressure, with TSMC, MediaTek, and Hon Hai all recording losses. While the semiconductor and electronics sectors generally struggled, some pockets of strength remained, particularly in the packaging and testing sector and thermal management stocks like Gigatek and Auras.

Defensive Positioning: Despite the overall market weakness, financial stocks including Cathay Financial, E.Sun Financial, and Fubon Financial showed relative resilience. Conversely, the petrochemical sector, specifically Formosa Petrochemical, saw sharp declines despite the rise in global oil prices, reflecting a complex reaction to the current macroeconomic environment.

Read original