Two-Day Slide Leaves TSE Just Below Key Level
The Taiwan Stock Exchange closed lower for the second consecutive trading session on Thursday, capping a two-day rout that erased more than 600 points, or roughly 2.6 percent, from the index. The benchmark now hovers just under the 23,400 mark, and traders are bracing for another pressured open on Friday.
The broader backdrop for Asian equities remains fragile. Analysts point to persistent selling in technology and semiconductor names as the dominant driver of weakness, with European and U.S. indices also closing in the red. That combination is expected to keep momentum negative across the region.
On Thursday specifically, the TSE was dragged down by broad losses in the technology and cement groups, while the plastics sector bucked the trend to post gains and the financials delivered a mixed bag. The index shed 371.33 points, a 1.56 percent decline, to close at 23,398.47. Intraday action saw the index range between 23,148.74 and 23,450.91.
Sector and Single-Stock Detail
At the individual-stock level, the session was marked by sharp divergence. Among the most active names, Cathay Financial slipped 1.68 percent, while Mega Financial surged 2.03 percent and First Financial gained 1.38 percent. Fubon Financial fell 1.21 percent and E Sun Financial added 1.33 percent.
The semiconductor and hardware complex was a clear laggard. Taiwan Semiconductor Manufacturing Company, the index's heavyweight, gave back 2.43 percent, and United Microelectronics Corporation lost 0.57 percent. Hon Hai Precision Precision took the hardest hit among the actives, plunging 3.77 percent, while Largan Precision retreated 1.79 percent. In a rare bright spot, Catcher Technology edged up 0.92 percent. MediaTek was among the biggest decliners, tanking 3.40 percent, and Delta Electronics slipped 2.31 percent.
The plastics group provided modest support: Formosa Plastics rose 1.16 percent and Nan Ya Plastics added 0.60 percent. In construction materials, Asia Cement dropped 0.83 percent. Novatek Microelectronics and CTBC Financial finished unchanged from the prior close.
U.S. Policy Headwinds and Wall Street's Turbulent Session
The tone set from Wall Street was decidedly negative. U.S. blue-chip and tech indices opened fractionally higher on Thursday but reversed course quickly, spending the bulk of the session in negative territory.
The Dow Jones Industrial Average fell 533.06 points, or 1.29 percent, to 40,665.02. The NASDAQ Composite lost 125.70 points, a 0.70 percent drop, to 17,871.22, and the S&P 500 surrendered 43.68 points, or 0.78 percent, to settle at 5,544.59.
Much of the anxiety traces back to Wednesday's technology sell-off, which was triggered by reports that the Biden administration is weighing stricter trade rules as part of its broader chip crackdown on China. That policy signal has raised questions about the near-term trajectory for semiconductor supply chains and, by extension, for heavily tech-exposed markets like Taiwan's.
Economic Data and Energy Markets Add to the Mixed Picture
In other U.S. data released Thursday, the Labor Department reported that initial claims for unemployment benefits rose more than consensus forecasts had indicated, a sign the labor market may be cooling faster than expected.
On the manufacturing front, the Federal Reserve Bank of Philadelphia noted that expansion in regional output was more widespread in July than in the prior month. Meanwhile, the Conference Board recorded a slight decline in its composite index of leading U.S. economic indicators for June, suggesting forward-looking momentum is softening.
In commodity markets, oil futures eased modestly on Thursday. Concerns over the trajectory of Chinese demand for crude, combined with a firmer U.S. dollar, kept a lid on prices. West Texas Intermediate crude for August delivery closed down three cents at $82.82 per barrel.