TAIPEI (TVBS News) — Taiwan's National Financial Stabilization Fund (國安基金), the government's market intervention mechanism, made an emergency move Wednesday (April 9) to shore up plummeting stocks, but its efforts proved insufficient against the powerful selling pressure. The weighted index plunged a staggering 1,068 points, or 5.79%, to close at 17,391 points, marking the third-largest single-day point drop in Taiwan's stock market history.
Taiwan Semiconductor Manufacturing Company's (TSMC, 台積電) shares breached the psychologically important NT$800 (US$24.24) threshold, closing at NT$785 (US$23.79), down NT$31. Electronics manufacturing giant Hon Hai (鴻海), known internationally as Foxconn, suffered its third consecutive limit-down day, closing at NT$112.5 (US$3.41). Chip designer MediaTek (聯發科) tumbled NT$75 (US$2.27) to NT$1,185 (US$35.91), while computer manufacturer Quanta Computer (廣達) reversed early gains to finish at NT$178.5 (US$5.41), down NT$13 (US$0.39).
All stock categories finished deep in negative territory, with Taiwan's market showing notably weaker performance compared to regional Asian counterparts. The crucial electronics sector index declined 5.48%, while financial stocks dropped 5.61%. The over-the-counter index, which represents smaller and mid-cap companies, suffered an even more severe blow, plummeting 7.44%. Despite the stabilization fund's announcement Tuesday night of its intention to support the market, panic selling continued unabated. The weighted index hit an intraday low of 17,306 points, briefly down 1,152 points, before a modest recovery narrowed losses slightly by the closing bell.
In comparison, while other Asian markets also experienced declines, none matched Taiwan's precipitous fall. Japan's Nikkei index shed 4.21%, South Korea's KOSPI dropped 1.83%, and Hong Kong's Hang Seng decreased 1.63%. Only mainland China showed resilience, with the Shanghai Composite Index edging up slightly by 0.14%. Market analysts suggest investors will closely monitor government interventions and corporate earnings reports in coming days as Taiwan's financial markets attempt to regain stability after this significant shock.
