Taiwan shares crash amid Trump's tariff threats over Greenland

Taipei, Jan. 21 (CNA) Shares in Taiwan moved sharply lower by more than 500 points Wednesday after heavy losses on U.S. markets overnight, as U.S. President Donald Trump threatened tariffs on European countries that oppose the sale of Greenland to Washington, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended down 513.62 points, or 1.62 percent, at 31,246.37 after moving between 31,200.76 and 31,749.14. Turnover totaled NT$868.9 billion (US$27.45 billion).

"Look at the large turnover. I think investors simply dumped their holdings in panic as their sentiment was hurt by the big U.S. losses," said Alex Huang, an analyst at Mega International Investment Services, referring to a 2.06 percent fall on the S&P 500 and a 2.39 percent drop on the tech-heavy Nasdaq index.

"Moreover, today was the settlement date for January futures contracts, so selling increased, with foreign institutional investors holding more short-position contracts than long-position ones," Huang said. "Tech stocks remained the targets of the sell-off."

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which represents over 40 percent of total market value, lost 1.97 percent to close at NT$1,740.00, contributing about 280 points to the Taiex's fall.

Memory chip supplier Nanya Technology Corp. shed 7.72 percent to end at NT$251.00, IC packaging and testing firm ASE Technology Holding Co. fell 1.69 percent to close at NT$291.00, and smartphone IC designer MediaTek Inc. ended down 1.35 percent at NT$1,465.00.

AI server maker and iPhone assembler Hon Hai Precision Industry Co. lost 2.10 percent to close at NT$219.00, while power management solution provider Delta Electronics Inc. rose 0.44 percent to end at NT$1,135.00.

Selling was seen almost across the board, although some non-tech stocks appeared resilient, Huang said.

On hopes that peak-season effects will boost ticket sales, China Airlines rose 1.60 percent to close at NT$22.25, and EVA Airways gained 0.26 percent to end at NT$38.30.

However, Eclat Textile Co. lost 1.19 percent to close at NT$416.00, and rival Far Eastern New Century Corp. slid 1.22 percent to end at NT$28.35.Meanwhile, Hotai Motor Co. dropped 1.67 percent to close at NT$530.00, and Yulon Nissan Motor Co. end down 1.10 percent at NT$53.90.

In the financial sector, shares in Cathay Financial Holding Co. fell 1.17 percent to close at NT$75.70, and Fubon Financial Holding Co. lost 1.06 percent to end at NT$93.00.

"Despite the losses, the Taiex still traded above 30,973 points, the 10-day moving average," Huang said. "However, if the level is breached, heavier losses could follow."

According to the TWSE, foreign institutional investors sold a net NT$44.06 billion of shares on the main board Wednesday.