TAIPEI (TVBS News) — Taiwan's benchmark stock index briefly flirted with the psychologically important 22,000 threshold Friday morning (March 14) before retreating, as global tariff tensions and security concerns continued to inject volatility into Asian markets. The Taiwan Stock Exchange opened with modest gains, climbing 25.13 points to 21,986.81, and momentarily surged past 22,000 before sellers emerged, pushing the index below this key level within minutes.
Taiwan Semiconductor Manufacturing Company (台積電), the market heavyweight that often dictates the broader index's direction, opened unchanged at NT$965 before succumbing to selling pressure that drove shares down NT$10 to NT$955. Market participants witnessed a fragmented performance across major stocks as investors processed the latest developments in international trade disputes. MediaTek (聯發科), the prominent chip designer, displayed resilience by opening NT$10 higher at NT$1,400, briefly retreating, then advancing to NT$1,410 — representing a NT$20 gain. Electronics manufacturing giant Hon Hai Precision Industry (鴻海) edged up NT$0.5 to NT$168.5.
The cautious trading follows Thursday's significant retreat, when the weighted index shed 316.68 points, or 1.42%, closing at 21,961.68 with transactions totaling NT$378.66 billion. Institutional activity painted a decidedly bearish picture, with the three major institutional investors collectively offloading a net NT$28.54 billion in shares. Foreign investors led the exodus, selling a net NT$23.575 billion, while self-employed traders disposed of NT$6.684 billion. Only trust funds provided some counterbalance, purchasing a net NT$1.719 billion.
The heaviest institutional selling targeted transportation and technology sectors, with EVA Air, AU Optronics, United Microelectronics Corporation (UMC), Nanya Technology, and Hon Hai Precision topping the list of stocks experiencing the most significant net selling.
Market sentiment has deteriorated further following former U.S. President Donald Trump's latest protectionist proposal — a punitive 200% tariff on European Union wines and spirits. This escalation has intensified global recession concerns, sending U.S. markets into a tailspin. The Dow Jones Industrial Average tumbled 537.36 points, or 1.3%, to close at 40,813.57. Taiwan Semiconductor's American Depositary Receipt (ADR) reflected the anxiety, plunging 3.15% to finish at US$171.59 in New York trading.
