Taiex plunges more than 2,600 points; TSMC suffers record intraday drop

Taipei, June 8 (CNA) Taiwan shares fell sharply in early trading Monday, with the benchmark index shedding more than 2,600 points as investors reacted to a sharp sell-off on Wall Street and mounting concerns that possible rate hikes could derail the artificial intelligence-driven market rally.

The Taiex fell below its 20-day moving average, dropping to around 42,389 points shortly after the market opened.

Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the market, opened down NT$135 (US$4.28) and fell to NT$2,230, marking its largest-ever intraday price decline. The drop wiped about NT$3.5 trillion from TSMC's market capitalization, bringing its value down to NT$57.82 trillion.

The sell-off followed steep losses in U.S. shares on Friday, when investors grew concerned that possible interest rate hikes could bring an earlier-than-expected end to the AI-driven boom. The Philadelphia Semiconductor Index tumbled 10.26 percent on Friday, while South Korea's benchmark stock index fell more than 8 percent in early Monday trading.

On Monday, other major Taiwanese technology stocks also came under pressure. Shares of Yageo Corp., ASE Technology Holding Co., Hon Hai Precision Industry Co. and Delta Electronics Inc. each dropped about 7 percent in morning trading.