Taiwan shares dive almost 800 points as Middle East war drags on

Taipei, March 31 (CNA) Shares in Taiwan plunged almost 800 points Tuesday, led by the electronics sector, amid weakening market sentiment as military conflicts in the Middle East continued, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 795.17 points, or 2.45 percent, at 31,722.99 after moving between 31,705.99 and 32,453.38. Turnover totaled NT$792.45 billion (US$24.49 billion).

The market attempted to stage a rebound during the session after the Wall Street Journal reported that U.S. President Donald Trump was willing to end the war with Iran without reopening the Strait of Hormuz. But selling reemerged, dragging down large-cap tech stocks, with the index recording its 12th steepest daily point loss in history.

"Many investors were reluctant to buy what Trump said as the situation could change overnight," Moore Securities Investment Consulting analyst Adam Lin said. "With this current quarter coming to an end, many institutional investors rushed to close their books by trimming positions."

"So, liquid tech heavyweights continued to trend lower with TSMC (Taiwan Semiconductor Manufacturing Co.) giving up its earlier brief gains," Lin said.

TSMC, which accounts for over 40 percent of total market value, lost 1.12 percent to close at the day's low of NT$1,760.00 after hitting a high of NT$1,790.00. The stock contributed about 160 points to the Taiex's fall.

Among other tech heavyweights under pressure, IC packaging and testing services firm ASE Technology Holding Co. shed 7.07 percent to end at NT$328.50 and memory chip supplier Nanya Technology Corp. plunged 10 percent to close at NT$198.50.

In addition, AI server maker and iPhone assembler Hon Hai Precision Industry Co. lost 3.35 percent to end at NT$187.50, and power management solution provider Delta Electronics Inc. slid 7.07 percent to close at NT$1,380.00.

Trump's remarks sent crude oil prices lower and the local petrochemical index also fell 4.18 percent, dealers said. Nan Ya Plastics Corp. shed 9.21 percent to end at NT$73.90 and Formosa Plastics Corp. lost 4.87 percent to close at NT$45.90.

China Steel Corp., Taiwan's largest steelmaker, dropped 1.31 percent to end at NT$18.90, and Tung Ho Steel Corp. closed down 1.60 percent at NT$87.80.

Cathay Financial Holding Co. dropped 0.14 percent to close at NT$70.30 and Fubon Financial Holding Co. ended down 0.46 percent at NT$86.00.

"Investors should watch whether the U.S. markets will rebound later today, which could move the Taiex tomorrow," Lin said, referring to the gains in after-hours trading of U.S. stocks now after Trump spoke.

On Tuesday, foreign institutional investors sold a net NT$80.75 billion of shares on the main board.

In March, the Taiex tumbled 3,691.50 points or 10.42 percent.