TAIPEI (TVBS News) — TSMC (台積電) shares in Taipei experienced a volatile session on Wednesday (Jan. 8) morning. They initially fell by 2% to NT$1,105 before stabilizing around NT$1,120. This fluctuation came after TSMC's American depositary receipts (ADRs) dropped 4% due to persistent U.S. inflation and NVIDIA's decline.
The broader Taiwan stock market index also contracted over 200 points before narrowing its losses. MediaTek (聯發科) collaborated with NVIDIA on the NVIDIA Project DIGITS, causing its stock to oscillate around NT$1,490. Hon Hai (鴻海) shares also trended lower, contributing to a more than 1% decline in the electronics subindex.
U.S. economic data revealed ongoing inflation, reigniting investor doubts about potential Federal Reserve interest rate cuts this year. This uncertainty caused the 10-year U.S. Treasury yield to surge, leading to significant pullbacks in major U.S. stock indices on Tuesday. Both the Nasdaq and the Philadelphia Semiconductor Index dropped over 1.8%. Consequently, Taiwan's stock market followed suit, with the index falling 174.13 points to 23,477.14 points in early trading.
TSMC's ADRs fell 3.9%, prompting a corresponding correction in Taipei's trading, where shares opened at NT$1,110, a decrease of NT$20. This drop pushed TSMC's market capitalization below NT$29 trillion, settling at NT$28.78 trillion, impacting the market by approximately 161 points.
As the Lunar New Year approaches, Taiwan's stock market had a stellar performance in 2024, surging 5,104.29 points, or 28.47%. This rally spurred a boom in Taiwan stock ETFs, with the top ten yielding over 40% returns, and the Capital Tip Customized Taiwan Select High Dividend ETF (群益台灣精選高息) leading in popularity, gaining over 610,000 investors last year.