TAIEX Eyes Comeback on April 8 After Historic 2,065-Point Drop as Global Markets Stabilize
Table of Contents
Following a devastating 9.7% drop on April 7, the Taiwan Capitalization Weighted Stock Index (TAIEX) is entering April 8 with renewed hopes of a technical rebound, fueled by signs of global stabilization and risk-on sentiment returning in the U.S. and Asia-Pacific.
The Nasdaq Composite closed higher on April 7, and the ASX 200 surged over 1% in early trade on April 8, indicating that the worst of Monday’s panic selling may be over.
Recap: April 7 TAIEX Market Bloodbath
- Close: 19,232.35
- Change: –2,065.87 (–9.70%)
- Open/High: 20,153.57
- Low: 19,212.02 (52-week low)
- Previous Close: 21,298.22
- 52-week high: 24,416.67
This was one of the worst single-day crashes in TAIEX history, triggered by investor panic over trade tension escalation, tech sector volatility, and foreign fund outflows.
Nasdaq and ASX 200 Offer a Glimmer of Hope
✅ Nasdaq Composite (April 7)
- Close: 15,603.26
- Change: +15.48 (+0.099%)
- Key Sector Stability: Tech stocks, AI, and semiconductors held firm
- Implication: Signals resilience in global tech, crucial for Taiwan’s export-led economy
✅ ASX 200 (April 8 – 10:15 am AEST)
- Index: 7,423.70
- Change: +80.40 (+1.09%)
- Momentum: Strong early rally across banks, miners, and tech
- Implication: Reflects investor appetite returning across Asia-Pacific
Together, these movements indicate that yesterday’s fear-based selling may have been overdone, especially for markets with a strong tech and semiconductor focus—like Taiwan.
April 8 TAIEX Outlook: Technical Bounce Likely
Technical indicators now place TAIEX deep into oversold territory, making a rebound more likely today. Sentiment could be further supported by:
- Stabilizing global indices (Nasdaq and ASX 200)
- Attractive valuations in Taiwan’s tech giants (TSMC, MediaTek)
- Possible domestic institutional support to avoid further panic
“The Nasdaq’s firm close gives hope that TAIEX could stage a reflexive rebound today. But sustainability will depend on how local funds behave in the first hour,” said Y.H. Lin, Chief Strategist at Yuanta Securities.
Key Levels to Watch
- Support: 19,200 (tested yesterday)
- Resistance: 19,650–19,800 (technical gap zone)
- Breakout Trigger: Above 20,000 with strong volume
Sector Focus
- Semiconductors: May lead recovery as U.S. tech remains stable
- Financials: Could rebound if foreign outflows stabilize
- Exporters & Electronics: Watch for response to USD/TWD movement
- Retail & Tourism: Likely to lag due to macro pressure
Cautious Optimism for TAIEX as Global Markets Turn Supportive
After a catastrophic drop, the TAIEX enters April 8 with renewed hope, thanks to a stable Nasdaq and strong ASX rally. While caution remains due to macro risks, today offers a real chance for Taiwan stocks to regain footing, especially in high-quality tech and export names.
Whether this bounce sustains will depend on early session volumes, foreign fund activity, and continued global calm.
The Hindustan Herald Is Your Source For The Latest In Business, Entertainment, Lifestyle, Breaking News, And Other News. Please Follow Us On Facebook, Instagram, Twitter, And LinkedIn To Receive Instantaneous Updates. Also Don’t Forget To Subscribe Our Telegram Channel @hindustanherald
