Key Highlights:
The Taiex index dropped sharply on Thursday, 11 April 2025, plummeting by 448.12 points or 2.36% to 18,551.91 in early trade. The slump follows overnight carnage on Wall Street, where the Nasdaq tumbled 4.31%, and renewed fears of a trade war between the U.S. and China.
This sharp selloff in Taiwan follows a trend seen across the Asia-Pacific region, where equity markets are struggling to digest escalating global tensions, rising volatility, and tech stock weakness.
Taiex Market Snapshot (As of 9:07 AM TST)
- Open: 18,772.50
- High: 18,772.50
- Low: 18,418.20
- Previous Close: 19,000.03
- Current Value: 18,551.91
What’s Driving the Decline?
Several global and local factors are weighing heavily on the Taiwan stock exchange today:
- U.S.-China Tensions Return: Former President Donald Trump proposed a 125% tariff on Chinese imports, reigniting fears of a fresh trade war, impacting Taiwan as a major Asian exporter.
- Nasdaq Freefall: The tech-heavy Nasdaq Composite plummeted 737.66 points, or 4.31%, dragging down sentiment in tech-dependent markets like Taiwan.
- Tech Rout in Asia: Regional indices such as Nikkei 225, KOSPI, and Hang Seng also opened sharply lower, reflecting broad tech sector selling.
- Currency Volatility: TWD weakened slightly against the USD, adding pressure on foreign fund flows.
Key Sectors Hit Hard
- Semiconductors: Heavyweights like TSMC and MediaTek are under pressure.
- Electronics: Consumer and industrial electronics counters saw across-the-board declines.
- Exporters: Companies with large China or U.S. exposure are reacting negatively to tariff headlines.
Expert Commentary
“The Taiex is extremely sensitive to global tech movements and geopolitical risks. Given Taiwan’s deep integration in the tech supply chain, a fall in Nasdaq and U.S.-China tensions typically hit us the hardest,” said Dr. Lin Hsiao-Wei, Chief Economist at Cathay Securities.
“Investors should expect elevated volatility over the next few sessions. Defensive strategies are advisable,” she added.
Outlook for the Rest of the Day
With early losses breaching the 400-point mark, investors are expected to remain cautious. Analysts predict the index may attempt to stabilise near the 18,400-18,500 support zone, but any worsening in global cues could invite deeper cuts.
Market participants will closely track developments in:
- U.S. CPI and Fed commentary
- Mainland China’s policy response to tariff threats
- Earnings announcements from tech majors in Taiwan
Volatility Ahead as Global Risks Rise
The Taiex today reflects a highly risk-averse mood in global equities. With Taiwan positioned at the heart of global tech exports, ripple effects from Nasdaq and U.S.-China headlines are proving particularly damaging.
Cautious positioning, tight stop losses, and a watchful eye on global headlines will be essential for navigating the session.
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