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US Midterm Election Uncertainty Fades; Analysts See Potential Rebound for Taiwan Stocks
Finance · Investment Banks/Brokers · economic_daily · 2026-11-04
Taiwan stocks experienced high volatility today, closing down 358.63 points, as investors look toward a potential market rebound following the US midterm elections.
What Happened
Market Volatility and Recovery: The Taiwan Stock Exchange experienced significant intraday volatility, with a swing of over 1,885 points before closing down 358.63 points at 42,948.91. Despite foreign investors offloading a record-breaking 149.89 billion TWD, the market showed resilience by narrowing its losses toward the end of the session.
Electoral Uncertainty Resolved: The conclusion of the US midterm elections and President Trump's conciliatory remarks regarding cooperation with the Democrats helped alleviate market anxiety. This political clarity provided a much-needed boost to regional markets, with South Korean stocks turning positive and Taiwanese stocks finding a floor.
Technical Indicators: Analysts noted that the significant lower shadow on the daily candlestick, combined with a surge in trading volume to over 1.11 trillion TWD, suggests strong buying interest at lower levels. These technical signals indicate that the market may be setting the stage for a potential rebound after a period of intense selling.
Future Outlook: Market experts emphasize that the recent correction was driven more by a breakdown in technical trends and investor confidence than by fundamental economic issues. Moving forward, market participants are advised to closely monitor geopolitical developments between the US and Iran as the next major catalyst for volatility.