Taiex Plunges 253 Points Amid Nasdaq Weakness; Global Markets Turn Cautious on April 16
Taiex opened deep in the red on April 16, mirroring weak cues from the US markets. The global equity landscape remains shaky as investors digest Nasdaq’s dip, rising rates anxiety, and geopolitical risks. Asian peers show mixed reactions, and this could ripple through Indian markets.
Key Highlights:
The Taiwan Capitalization Weighted Stock Index (TAIEX) opened significantly lower on Wednesday, April 16, 2025, dropping 253.95 points or 1.28% to trade at 19,603.72. This steep fall follows the global rout triggered by a sluggish session on Wall Street and deepening geopolitical tensions.
What Happened on April 15
Global equities struggled to maintain gains on Tuesday as traders responded to a mix of hawkish US Fed commentary, cautious tech earnings, and renewed tensions in the Middle East.
The Nasdaq Composite closed down 8.32 points (-0.049%) at 16,823.17, while Nasdaq Futures lost 66.50 points (-0.35%) in early Asian trade. The S&P 500 and Dow Jones also dipped marginally, as investor confidence weakened amid concerns over inflationary pressures and Fed rate hikes staying longer than expected.
This cautious tone spilled into Asian trading sessions.
Asian Markets: Mixed Sentiment Prevails
Here’s a look at the major Asian indices as of the morning session on April 16:
- Nikkei 225 (Japan): Down 89.26 points or 0.26% at 34,178.28
- KOSPI (South Korea): Down 4.77 points or 0.19% at 2,472.64
- Hang Seng (Hong Kong): Slightly up by 78.36 points (0.37%) at 21,495.76
- SSE Composite (China): Down 3.84 points (0.12%) at 3,258.97
- SZSE Component (China): Down 8.56 points (0.45%) at 1,894.93
The Taiex is the worst-performing index of the region, highlighting intensified investor risk aversion in Taiwan.
Why Taiex Is Falling Today
1. Nasdaq and Tech Influence
Taiwan’s stock market, heavily influenced by tech giants like TSMC and Foxconn, often mirrors the Nasdaq’s movement. The weak Nasdaq close and disappointing guidance from semiconductor firms globally put selling pressure on Taiex components.
2. Profit Booking
After multiple sessions of gains, traders have turned cautious, leading to profit-booking ahead of earnings releases from major Taiwanese firms.
3. Geopolitical Worries
Heightened geopolitical tensions, especially surrounding China’s naval activities near Taiwan and continued US-China trade friction, have dampened investor mood.
Taiex Technical Snapshot
- Open: 19,737.09
- High: 19,737.09
- Low: 19,598.40
- Previous Close: 19,857.67
The index is now trading near its crucial support zone of 19,600. A break below this could drag the index further towards 19,500. Resistance on the upside lies near 19,750.
Global Market Outlook: April 16, 2025
Europe:
- FTSE 100: Opened higher but remains volatile, reacting to rising energy prices and cautious corporate earnings.
- DAX (Germany): Flat to slightly higher, aided by banking and automotive stocks.
US Futures (as of Asian hours):
- Nasdaq Futures: Down by 0.35%
- Dow Futures: Slightly negative
- S&P 500 Futures: Flat to negative
Commodities:
- Brent Crude: At $90.40/bbl
- Gold: Slightly up at $2,395/oz
- US Dollar Index (DXY): Holding firm at 105.18
Indian Market Preview: Nifty and Sensex Under Pressure
Given the sharp dip in Gift Nifty earlier today (-124 points), Indian indices are likely to open lower.
Predicted Opening Levels:
- Nifty 50: Around 23,240–23,280
- Sensex: Below 76,900
Nifty Support/Resistance:
- Support: 23,180 / 23,100
- Resistance: 23,400 / 23,520
Sensex Support/Resistance:
- Support: 76,750 / 76,500
- Resistance: 77,150 / 77,300
Factors Driving Markets Today
- Nasdaq Weakness: Continued tech drag to influence broader sentiment.
- Taiex Fall: May ripple into Asian peer markets including India.
- Crude Prices: Nearing psychological $90 mark – could impact inflation and policy expectations.
- Q4 Earnings: IT, pharma, and banking results to drive stock-specific moves.
- FIIs/DIIs: Trend needs monitoring – last session showed mild net selling by FIIs.
Expert View
According to analysts, the dip in Taiex is a red flag for tech-led markets, especially India’s Nifty IT sector. “A weak start in Taiwan, coupled with Nasdaq’s choppy session, puts Indian equities at risk of a short-term pullback. Traders must watch for sector-specific divergence, especially in FMCG and energy stocks,” said Ajay Bagga, market veteran.
Taiex’s plunge today is a reflection of the fragile global investor sentiment. With major indices like Nikkei, Kospi, and SZSE also under pressure, markets are bracing for high volatility. India is likely to follow the cautious mood unless supported by strong domestic earnings or institutional buying. Traders are advised to stay stock-specific and avoid aggressive positions at the open.
Stay tuned for live updates as more markets open across Europe and North America.
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
