Taiwan shares plunge over 2% Wednesday morning on tech losses

Taipei, Aug. 20 (CNA) Shares in Taiwan tumbled more than 2 percent Wednesday morning as the bellwether electronics sector took a beating in the wake of heavy losses suffered by tech stocks on U.S. markets overnight, dealers said.

As of 11:18 a.m., the Taiex, the Taiwan Stock Exchange's weighted index, had shed 584.43 points, or 2.40 percent, to 23,759.87 on turnover of NT$344.28 billion (US$114.76 billion), led by the electronics sector after the tech-heavy Nasdaq index fell 1.46 percent on Tuesday.

"The market had risen sharply since June without any apparent pullback, leaving the shock posted by the Trump administration's tariff policies behind," Mega International Investment Services analyst Alex Huang said.

From, June 1 to Aug. 19, the Taiex soared 3,006.20 points, or 14.08 percent.

"Today, investors simply seized on the losses on U.S. markets as a reason to pocket their profits, and big electronics stocks in particular came under pressure," Huang said.

After its American depositary receipts fell 3.61 percent overnight, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) had lost 3.38 percent to NT$1,145.00 as of 11:18 a.m., contributing to a 2.97 percent fall in the electronics index.

Among other tech heavyweights, IC packaging and testing services provider ASE Technology Holding Co. had lost 2.69 percent to NT$144.50, and iPhone assembler and AI server maker Hon Hai Precision Industry Co. had dropped 3.61 percent to NT$200.50.

"Many investors are anxiously watching the U.S. Federal Reserve's next move, and they want to keep as much cash as possible for the time being," Huang said.