TAIPEI (Taiwan News) — Taiwan’s stock market fell Tuesday amid ongoing uncertainty surrounding US-Taiwan tariff negotiations and upcoming recall votes, contributing to increased market volatility and selling pressure toward the end of the session.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, declined 352.64 points to close at 22,987.92. Turnover reached NT$435 billion (US$14.8 billion), according to CNA and CTEE.
TSMC briefly tested its Jan. 7 peak of NT$1,160, but later reversed course, ending the day down 1.74% at NT$1,130. The decline in TSMC weighed on other major tech stocks, including Quanta Computer, Delta Electronics, Asia Vital Components, and Foxconn, all of which ended lower.
Despite the index's weakness, select stocks posted gains. MediaTek rose 0.35% to NT$1,430 following positive June revenue results.
The company overtook Foxconn in market capitalization and reclaimed its position as Taiwan’s second-largest listed company. Foxconn declined 1.82% to NT$162.
Gains were also recorded in Global Brands Manufacture and Ezconn. In contrast to the broader tech pullback, a handful of steel and cement stocks managed to post gains, offering modest support.
Robotics-related shares fell even after the launch of an artificial intelligence robotics alliance. Apex Dynamics and Hiwin Mikrosystem both fell over 5%, while Solomon Technology, Asia Optical, Micro-Star International, and Mirle Automation posted losses exceeding 4%.
Meanwhile, Mitac Holdings rose nearly 5% to NT$78.8, with trading volume reaching 320,000 lots, or 320 million shares. The company benefited from robust demand for AI server products.
Analysts attributed the day’s cautious sentiment to the lack of clarity on tariff policies and potential political developments ahead of the July 26 recall votes, which could shift legislative dynamics. In light of this, market participants are advised to focus on individual stock fundamentals rather than broad market trends.
PGIM Small & Medium Cap Fund Manager Tu Hsin-pei (杜欣霈) said that Taiwan’s equity market remains underpinned by positive sentiment in the semiconductor sector and robust performance from US technology stocks. She added that corporate earnings and currency fluctuations will be key factors in determining short-term movements.
Tu highlighted several areas of interest for investors, including cloud AI, the 2-nanometer foundry supply chain, memory chips, edge computing, optical communications, low-Earth orbit satellites, robotics, and foldable smartphones.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
