TAIPEI (TVBS News) — Taiwanese stocks tumbled 165.47 points to close at 22,547.5 on Friday (July 4) as investors nervously awaited the impending announcement of critical tariff negotiation results. The benchmark index managed to maintain its position above the five-day moving average of approximately 22,529, providing some technical support amid the market uncertainty. The decline reflected growing investor anxiety over potential trade policy changes that could impact Taiwan's export-dependent economy.
Taiwanese stocks initially surged over 100 points to reach 22,842.75 before dramatically reversing course and plummeting to a session low of 22,500.97. The trading volume reached NT$321.882 billion (around US$11.16 billion), with electronics and financial sectors declining 0.63% and 0.8% respectively, while the over-the-counter index bucked the trend with a 1.27% gain. Taiwan Semiconductor Manufacturing Company TSMC (台積電) Taiwan's chip giant dropped NT$5 to close at NT$1,085 (around US$37.63), marking a 0.46% decline and ranking among the weaker performers in the weighted stock category.
Artificial intelligence concept stocks struggled significantly, with major companies like ASUS (華碩) and Wistron (緯創) closing lower than their opening prices. However, printed circuit board sector stock Topoint (尖點) managed to rebound impressively, gaining 6.08% against the broader market trend. Heavy electrical equipment stocks faced substantial pressure, with Shihlin Electric & Engineering Corp (士電), Chung-Hsin Electric & Machinery Manufacturing Corp (中興電), and Fortune Electric Co., Ltd (華城) posting declines of 2.7%, 2.42%, and nearly 3% respectively.
Steel sector stocks plummeted across the board, with Century Iron and Steel Industrial Co. (世紀鋼) hitting the daily limit down in a dramatic sell-off. Other major steel companies also faced significant pressure, as Feng Hsin Steel Co. Ltd (豐興), Shinkong Steel (新光鋼), and Chung Hung Steel (大成鋼) dropped by 2.35%, 2.72%, and 2.11% respectively. The widespread decline in steel stocks reflected broader concerns about industrial demand and economic uncertainty.
Huang Kuo-wei (黃國偉), vice president of Mega International Investment Services, attributed the market's downward adjustment to mounting anticipation over tariff negotiation results. He noted that a bearish fundamental outlook combined with elevated stock price levels contributed to increased index volatility. Huang advised investors to monitor developments closely as market fluctuations are expected to continue amid ongoing uncertainty.
U.S. markets closed early due to Independence Day celebrations but managed to reach new record highs for both the S&P 500 and Nasdaq indices. The impressive performance was driven by better-than-expected employment data and optimism surrounding tax cut measures from Donald Trump. ◼
(At time of reporting, US$1 equals approximately NT$28.838)