Taiwan shares plunge 1,494 points amid Middle East conflict

Taipei, March 4 (CNA) Taiwan's benchmark index plunged 1,494.77 points Wednesday, marking the third-largest single-day point drop in history, as escalating tensions in the Middle East triggered heavy selling across the board.

The Taiex, the Taiwan Stock Exchange (TWSE)'s weighted index, closed down 4.35 percent at the day's low of 32,828.88, after opening at the session high of 34,228.75. Turnover totaled NT$1.033 trillion (US$32.52 billion), the third-highest on record, suggesting liquidity remained robust despite the steep decline.

The sell-off pushed the index below its 20-day moving average, or monthly line, of around 33,105 points.

The downturn followed sharp losses on Wall Street after the United States and Israel launched strikes on Iran, prompting retaliation from Tehran and heightening geopolitical tensions.

Large-cap technology stocks bore the brunt of the decline. Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for more than 40 percent of the market's total capitalization, fell NT$70, or 3.62 percent, to close at NT$1,865, its session low.

Hon Hai Precision Industry Co. dropped NT$12, or 5.24 percent, to NT$217, while Delta Electronics Inc. slid NT$85, or 6.34 percent, to NT$1,255. MediaTek Inc., a leading smartphone IC designer, shed NT$95, or 5.23 percent, to end at NT$1,720.

All eight major industrial sectors finished lower, with plastics, electric machinery, cables and glass stocks posting the steepest losses of more than 4-5 percent.

Several high-priced stocks hit their daily limit-down, reducing the number of so-called "NT$1,000 stocks" to 34. Thermal module supplier Auras Technology Co. fell to NT$972, dropping out of the four-digit club.

Energy-related shares bucked the broader downturn on expectations of higher oil prices. Great Taipei Gas Corp. rose 3.81 percent to NT$31.3 after hitting its daily limit-up earlier in the session, while Shin Shin Natural Gas Co. closed limit-up at NT$46.25.

WT Microelectronics Co., an electronics component distributor, also rose to its daily limit of NT$195.5, helping the electronic distribution sub-index gain 0.83 percent.

Lu Chin-wei (呂晉維), a senior manager at Concord Capital Management Corp., said the market was undergoing a technical correction after an extended rally and would need time to digest selling pressure.

The wide deviation from the annual moving average suggested further sector rotation and volatility before the broader market stabilizes, he said.

Although Middle East tensions have lifted oil prices, Lu said U.S. Federal Reserve policy is unlikely to be as accommodative this year as in 2025, limiting the impact on the real economy.

With TSMC and MediaTek having raised their full-year outlooks, Taiwan's tech sector growth prospects remain intact, he added.

Meanwhile, foreign institutional investors were net sellers of NT$96.47 billion in shares on Wednesday, the third-largest net sell-off on record, according to the TWSE.