Taiwanese stocks plunged more than 340 points yesterday following the three-day Dragon Boat Festival holiday, as renewed fears over US’ trade policies rattled investor confidence after US President Donald Trump’s on Friday said that China had breached a preliminary trade deal with Washington, and announced double tariffs on steel and aluminum imports to 50 percent.
Trump’s remarks were followed by US Secretary of Commerce Howard Lutnick critizing Beijing for its slow implementation of the deal — an agreement that had previously lifted market sentiment and raised hopes for a durable easing of tensions between the world’s two largest economies.
The Chinese Ministry of Commerce said in a statement yesterday that Washington is making “bogus charges” and has “unreasonably accused China of violating the consensus, which is seriously contrary to the facts.”
Photo: CNA
The TAIEX closed down 344.59 points, or 1.61 percent, at 21,002.71, with total turnover reaching NT$344.76 billion (US$11.50 billion), Taiwan Stock Exchange data showed.
The market opened 0.44 percent lower, and losses increased throughout the session, driven by heavy selling in the bellwether electronics sector, in particular among large-cap semiconductor stocks.
Investor sentiment remained subdued amid concerns sparked by Trump’s accusation.
“Global markets remained focused on the tariff issue,” Cathay Futures Consultant Co (國泰證期) analyst Tsai Ming-han (蔡明翰) said. “Now, Trump’s comments raised concerns over trade frictions between the top two economies.”
“In Taiwan, investors remain alert over a possible tariff on semiconductors, and that’s why chip stocks came under heavier pressure throughout the session,” Tsai said.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted local stock, fell 2.17 percent to close at the day’s low of NT$946, while smartphone IC designer MediaTek Inc (聯發科) appeared more resilient, ending unchanged at NT$1,260.
Also in the electronics sector, iPhone assembler and artificial intelligence (AI) server maker Hon Hai Precision Industry Co (鴻海精密) lost 2.24 percent to close at NT$152.5, and Quanta Computer Inc (廣達電腦), another AI server supplier, dropped 0.18 percent to end at NT$271.
“The TAIEX fell below the technical support of the 20-day moving average around 22,815 points today, meaning the local main board has became technically weaker,” Tsai said. “As long as the tariff issue remains in place, investors should stay cautious.”
Elsewhere in Asia, most markets sank yesterday as investors brushed off data released on Friday showing the US Federal Reserve’s favored inflation gauge cooled more than expected last month.
Hong Kong, Tokyo, Sydney, Singapore, Mumbai and Jakarta fell along with London, Paris and Frankfurt.
Seoul and Manila were marginally higher, while Shanghai was closed for a holiday.
Additional reporting by AFP
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