TAIPEI (Taiwan News) — Taiwan’s stock market declined on Monday as renewed US-China trade tensions weighed on investor sentiment, though early losses eased later in the session.
The Taiwan Capitalization Weighted Stock Index (TAIEX) fell 378.50 points to close at 26,923.42. Turnover rose to NT$584 billion (US$19 billion), reflecting active buying and selling, per CNA and CTEE.
TSMC slipped 1.74% to NT$1,415. MediaTek fell 2.23% to NT$1,315, while Foxconn closed at NT$138.5, a 3.84% decrease.
Among stocks priced above NT$1,000, most declined, while Wiwynn and AsMedia Technology posted slight gains. Chunghwa Precision Test ended the day unchanged, and Delta Electronics rose 3.1% to NT$1,030, regaining its position above NT$1,000.
Shares linked to rare earth materials advanced following China’s tightened export controls. Lianyou Metals and Silitech Technology hit limit-up, while Waste Recovery Technology and Mechema Chemicals also gained.
Companies based in Taipei’s Shilin District saw positive movement as discussions continue over Nvidia’s planned northern Taiwan headquarters. Shihlin Paper and Shinkong Textile both hit limit-up, and Shihlin Electric and Engineering rose 1.14%.
Defense-related stocks outperformed after President Lai Ching-te (賴清德) pledged to increase Taiwan’s defense spending to over 3% of GDP next year and to 5% by 2030. Air Asia hit limit-up, Aerospace Industrial Development rose 2.11% to NT$58.2, Thunder Tiger increased 4.96% to NT$148, and Coretronic edged up 0.87% to NT$116.5.
Memory chipmakers retreated following recent gains. Winbond Electronics, PSMC, and Nanya Technology fell 1.04%, 3.47%, and 2.94%, respectively, while Team Group extended its winning streak to a fifth session, rising more than 40% over the past week.
The market’s cautious mood followed China’s announcement Thursday imposing export controls on certain rare earth materials and technologies. US President Donald Trump’s threat of a 100% tariff on Chinese imports contributed to declines in US stocks, raising concerns that Taiwan’s market could face further losses on Tuesday.
Officials cited by CNA said the National Stabilization Fund will monitor global political and economic developments closely and take timely measures to maintain investor confidence and market stability.
Chi Far Securities analyst Lee Yung-nien (李永年) noted that if the TAIEX does not close the gap at 27,253 points within three trading days, it may continue to fluctuate and undergo further corrections. He added that US market movements will remain a key influence, with the broader index expected to trade within a range over the next two weeks.
Institutional investors also highlighted the importance of monitoring foreign fund flows and margin trading trends in the short term. TSMC’s upcoming earnings call on Oct. 16 was cited as another event likely to shape market sentiment.
This information is not intended as personalized financial advice. Investors should conduct their own research before making investment decisions.
