Taiwan Stocks Plunge Over 1000 Points Amid Fed Rate Hike Anxieties

Taiwan stocks opened sharply lower today, with market sentiment showing signs of unease early in the session. Although prices briefly rebounded, they were suppressed again in the afternoon. The market experienced an intraday swing of over 1,000 points, ultimately closing at 43,091.87 points, down 1,165.28 points from the previous trading session. Although the decline exceeded the 10-day moving average, the market remained above the 10-day line by the close, indicating that some short-term support remains.

As a heavyweight stock, Taiwan Semiconductor Manufacturing Company (TSMC) was not spared. Its share price extended its intraday decline to NT$55, closing at NT$2,340, a drop of approximately 2.3%. As the world's leading wafer foundry, TSMC's stock price fluctuations are often seen as an important barometer for the overall trend of Taiwan stocks. TSMC's decline also reflects fluctuations in global semiconductor demand and uncertainties in U.S.-China trade relations.

The market's decline was primarily driven by multiple factors. First, the U.S. Federal Reserve (Fed) announced earlier this month that it would raise interest rates to higher levels, raising market concerns that a high-interest-rate environment will suppress corporate investment and consumer demand. Second, global stock markets are generally under pressure, particularly the U.S. Nasdaq Index, which fell sharply due to a correction in tech stocks, further spilling over into emerging markets. Furthermore, Taiwan's domestic macroeconomic data showed a slowdown in export order growth, placing pressure on manufacturing capacity utilization.

Technically, the Taiwan stock market closed above the 10-day moving average today, indicating that short-term support remains. Investors are generally watching whether the 10-day line can withstand the pressure; if broken, it could trigger further technical selling. Conversely, maintaining a position above the 10-day line could provide a foundation for a future rebound. Market participants are also monitoring the monetary policy moves of Taiwan's central bank; if the central bank adopts more accommodative measures, it may alleviate market pressure.

Looking ahead, Taiwan stocks will still face external risks and internal structural challenges in the short term. Uncertainties in the global trade environment, fluctuations in the semiconductor supply chain, and the continuation of the U.S. interest rate hike policy will continue to affect market sentiment. When conducting asset allocation, investors should place greater emphasis on risk management and diversified investment to reduce the impact of single-market volatility. In the coming week, the market will continue to closely monitor the U.S. Federal Reserve's policy statements, the performance of major global stock indices, and the release of Taiwan's economic data, as these factors will collectively determine the direction of Taiwan stocks.