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Taiwan Stocks Slide 461 Points, Falling Below Quarterly Support Level

Electronic Technology · Semiconductors · economic_daily · 2026-08-24

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The Taiwan Stock Exchange fell 461.97 points to close at 44,762.32, dropping below the 45,000 mark and its quarterly average as TSMC shares declined.

What Happened

Market Performance: Taiwan stocks faced downward pressure on the 24th, closing down 461.97 points or 1.02% to settle at 44,762.32. The index failed to maintain the 45,000-point threshold and broke below its quarterly moving average, with trading volume shrinking to 629.4 billion TWD.

Sector Rotation: TSMC led the decline, closing at 2,375 TWD, down 1.45%. Investors shifted capital away from high-valuation AI server and electronic component stocks toward lower-valuation, defensive sectors, while UMC saw notable trading activity.

Technical Outlook: Analysts at First Capital Investment Consulting noted that the market is showing signs of a weak rebound characterized by volume-price divergence. With technical indicators like the daily KD and MACD showing limited strength, the market is unlikely to see a V-shaped reversal until it breaks through short-term resistance with significant volume.

Investment Strategy: Experts advise maintaining a disciplined approach, focusing on buying on dips rather than chasing rallies. For long-term themes like AI servers and silicon photonics, investors are encouraged to wait for NVIDIA's earnings guidance and for stock prices to stabilize at key support levels before increasing exposure.

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