Taiwan shares fall nearly 400 points amid concerns over U.S. economy

Taipei, March 11 (CNA) Shares in Taiwan fell almost 400 points Tuesday amid growing fears of a recession in the United States and steep losses on the U.S. markets overnight.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 388.06 points, or 1.73 percent, at 22,071.09 after moving between 21,769.57 and 22,140.39. Turnover totaled NT$409.64 billion (US$12.43 billion).

The market opened 1.48 percent lower, triggering a wave of selling that at one point dragged the Taiex down 689 points, led by the bellwether electronics sector.

The decline followed a 4 percent plunge in the tech-heavy Nasdaq. However, bargain hunters later stepped in, helping the broader market recover some losses by the close.

"An escalation of the Trump administration's tariff actions has worried many investors," Moore Securities Investment Consulting analyst Adam Lin said. "And the Taiex felt that volatility."

The electronics index lost 2.01 percent as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock here, fell 2.71 percent to close at NT$971.00, contributing about 220 points to the Taiex fall.

"TSMC's American depositary receipts shed 3.64 percent overnight, so it was no surprise that the stock, along with the Taiex as a whole, took a beating," Lin said.

"There have also been concerns over TSMC's profit margin after the chipmaker pledged an additional US$100 billion investment in Arizona," Lin added.

Meanwhile, smartphone IC designer MediaTek Inc. appeared resilient, down only 0.72 percent, ending NT$1,385.00, while IC packaging and testing services provider ASE Technology Holding Co. shed 2.11 percent, closing at NT$156.00.

After American AI chip designer Nvidia Corp. tumbled 5.07 percent overnight, Taiwanese AI-related stocks followed suit with iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, losing 2.03 percent and ending at NT$168.50.

In the old economy sector, Formosa Petrochemical Corp. lost 2.02 percent to close at NT$38.85, and Formosa Chemicals & Fiber Corp. fell 1.69 percent to end at NT$29.10.

Shihlin Electric & Engineering Corp. shed 3.38 percent to close at NT$171.50, and Fortune Electric Co. plunged 7.26 percent to end at NT$562.00.

Bucking the downturn, container cargo shipper Evergreen Marine Corp. rose 0.89 percent to close at NT$226.50, and bulk cargo shipper Sincere Navigation Corp. gained 1.08 percent to end at NT$28.20.

The financial sector lost 0.89 percent with Cathay Financial Holding Co. down 2.08 percent, closing at NT$65.90, and Fubon Financial Holding Co. down 1.10 percent, ending at NT$89.70.

"Investors should pay attention to how the Taiex will perform over the next two to three sessions for clues about a possible meaningful rebound," Lin said.

According to the TWSE, foreign institutional investors sold a net NT$46.06 billion worth of shares on the main board Tuesday.