Taiwan shares take a dive on Trump tariff threats

Taipei, March 31 (CNA) Shares in Taiwan plunged more than 4 percent Monday, driven down by fears over U.S. President Donald Trump's tariff threats that could become reality later this week, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended down 906.99 points, or 4.20 percent, at the day's low of 20,695.90, off a high of 21,254.63. Turnover totaled NT$417.86 billion (US$12.58 billion).

Monday's decline was the fourth steepest in terms of points in the Taiex's history, after falls of 1,807.21 points, on Aug. 5, 2024, 1,004.01 points on Aug. 2, 2024, and 999.46 points on Sept. 4, 2024.

The market opened down 1.61 percent as investors were nervous ahead of Trump's expected announcement of new tariffs by April 2. Selling then escalated across the board as reports surfaced that Trump was mulling tariffs covering all countries, dealers said.

"Previously, the market had anticipated Trump would allow some exceptions but the reports simply dampened investor sentiment further," Hua Nan Securities analyst Kevin Su said.

"Taiwan apparently will not be able to avoid the consequences, and the Taiex was not able to remain above 21,000 points as markets around Asia tumbled."

The electronics sector led the downturn due to its high weighting, falling 4.68 percent.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the market, shed 4.41 percent to close at NT$910.00, contributing about 320 points alone to the Taiex's fall.

TSMC's selling spread to other semiconductor stocks. Smartphone IC designer MediaTek Inc. slid 5.12 percent to end at NT$1,390.00, and IC packaging and testing services provider ASE Technology Holding Co. closed 4.98 percent lower at NT$143.00.

Bucking the downtrend, United Microelectronics Corp., a smaller contract chipmaker, ended up 0.22 percent at NT$44.65.

IPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market value, shed 5.19 percent to close at NT$146.00, and power management solution provider Delta Electronics Inc. lost 4.38 percent to end at NT$360.00.

Su said non-tech heavyweights also came under pressure, adding more pressure to the broader market.

Among the falling old economy stocks, Nan Ya Plastics Corp. shed 3.23 percent to close at NT$30.00, Formosa Chemicals & Fibre Corp. lost 3.16 percent to end at NT$26.05, Formosa Plastics Corp. dropped 2.40 percent to close at NT$36.60, and Formosa Petrochemical Corp. ended down 1.88 percent at NT$36.60.

Elsewhere in the old economy sector, Shihlin Electric & Engineering Corp. tumbled 10 percent, the maximum daily decline, to close at NT$146.50, and rival Fortune Electric Co. also plunged 10 percent to end at NT$449.50.

In the financial sector, which lost 2.49 percent, Cathay Financial Holding Co. lost 4.38 percent to close at NT$61.20, and Fubon Financial Holding Co. ended down 3.29 percent at NT$85.30.

"After today's heavy losses, the Taiex has become more fragile technically," Su said. "Investors should keep more cash on hand for now and wait for new buying opportunities to arise after uncertainties over tariffs are removed."

Su warned that the index could test 20,000 points soon.

According to the Taiwan Stock Exchange, foreign institutional investors were again net sellers for the ninth time in the last 11 trading sessions, selling a net NT$37.85 billion in shares on Monday.