Shares in Taiwan took a hit yesterday as investor sentiment was spooked by the US bombing of three nuclear sites in Iran over the weekend, raising concerns about escalating political tensions in the Middle East.
The TAIEX closed down 313.72 points, or 1.42 percent, at 21,732.02, with foreign institutional investors offloading a net NT$15.21 billion (US$511.5 million) in shares on the main board, Taiwan Stock Exchange data showed.
“The US strike complicated the conflicts in the Middle East, and the TAIEX simply reacted to growing geopolitical unease today,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said.
Photo: RITCHIE B. TONGO, EPA-EFE
“With US President Donald Trump floating the idea of regime change in Iran, there are growing fears that Washington will send ground forces to oust the current Iranian leadership, which would further exacerbate the situation,” Huang said.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock in the TAIEX, shed 3.32 percent to end at NT$1,020, contributing about 280 points to the index’s fall.
“TSMC shares underperformed and served as a driver to the TAIEX’s losses as Washington is reportedly considering an end of waivers that allow the chipmaker and others to send American technology to China,” Huang said.
Petrochemical stocks saw gains following a spike in international crude oil prices, with Formosa Petrochemical Corp (台塑石化) rising 3.9 percent, Formosa Plastics Corp (台灣塑膠) gaining 1.61 percent and Nan Ya Plastics Corp (南亞塑膠) up 0.37 percent.
“Investors should monitor to see if Iran will follow through with shutting down the Strait of Hormuz, as reported,” Huang said.
If Hormuz, a critical passage for oil shipments, is closed, crude oil prices are likely to rise higher, adding pressure to inflation, he added.
International crude oil prices initially surged more than 2 percent, but later retreated, losing about 0.4 percent in Asian trading, as investors awaited Iran’s response to US strikes on its nuclear facilities.
Asian stock markets mostly retreated, while European bourses saw modest gains, and US stock futures edged higher.
The US dollar strengthened against other currencies, but analysts questioned how sustainable this would be.
“Everything hinges on Iran’s response — whether it’s a symbolic jab or a haymaker that knocks the Strait of Hormuz offline,” SPI Asset Management managing partner Stephen Innes said.
Iran, a major oil producer, sits on the Strait of Hormuz, through which a significant portion of the world’s crude oil passes.
While closing the waterway would be technically challenging, it could severely disrupt oil transit, causing oil prices to surge, insurance rates to spike and making shippers reluctant to operate without US Navy escorts.
Additional reporting by AP and AFP
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
HSBC Holdings PLC is deepening its commitment to Taiwan as the economy emerges as one of the bank’s fastest-growing markets globally, driven by an artificial intelligence (AI) investment boom, expanding cross-border trade, and rising wealth creation. “The advantage that Taiwan has is a growth story linked to the semiconductor and broader AI industries, strong underlying corporate performance, and wealth creation,” said Surendra Rosha, HSBC’s co-chief executive for Asia and the Middle East, in an exclusive interview with the Taipei Times on June 2, during this year’s HSBC Taiwan Conference. That combination has helped HSBC cement its position as the most profitable international
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
Hon Hai Precision Industry Co (鴻海精密) yesterday said it would work with US chipmaker Intel Corp to jointly develop and deploy next-generation artificial intelligence (AI) infrastructure and intelligent computing platforms in a move to capture booming demand for AI computing systems. Hon Hai, also known as Foxconn Technology Group (富士康), said in a statement that the partnership would combine its global manufacturing scale, system integration expertise and AI data center deployment capabilities with Intel’s strengths in processor architecture, silicon technologies and software ecosystem. The companies said they plan to work on equipment used in AI data centers, including server racks powered by
RSS