Taiex suffers biggest single-day point drop in history

Taipei, July 17 (CNA) Taiwan's benchmark stock index plunged 2,953.71 points Friday, its biggest single-day drop on record, as a sell-off in artificial intelligence-related shares dragged U.S. markets lower and weighed on global equities.

The Taiex opened lower at 45,234 points and extended losses throughout the session, closing down 2,953.71 points, or 6.47 percent, at 42,671.27 on turnover of NT$1.21 trillion (US$37.61 billion).

The decline marked the largest point drop in the Taiex's history, breaking the previous record of 2,065.87 points set on April 7 last year after U.S. President Donald Trump announced his reciprocal tariff policy.

Large-cap stocks led Friday's market rout, with Taiwan Semiconductor Manufacturing Co. (TSMC) shares falling NT$180 to close at NT$2,290, down 7.29 percent.

United Microelectronics Corp. (UMC), Yageo Corp. and Nanya Technology Corp. hit their daily limits, while MediaTek Inc. and Delta Electronics Inc. each lost nearly 9 percent.

Shares fell after TSMC predicted lower profit margins for the next quarter, even though the chipmaker just reported record-high revenue and profit for the previous three months.

The three major institutional investors -- foreign investors, proprietary traders, and local investment trusts -- posted combined net selling of NT$261.71 billion on Friday.

U.S. stocks fell Thursday as a sell-off in AI-related companies dragged down major indexes and sank the Philadelphia Semiconductor Index 4.29 percent.