Taiwan's stock market rebounds after historic plunge

On July 17 the Taiwan weighted index (TAIEX) fell 2,953 points, the largest one‑day drop in its history. The market then recovered 877 points during the night session, prompting debate about a possible “V‑shape” rebound.

Analysts said the decline was not driven by Taiwan Semiconductor Manufacturing Co. (TSMC) fundamentals but by panic and rapid unwinding of leveraged positions after a more than 50 % gain earlier in the year. They warned of a “financing‑kill‑more‑sell” cycle as margin‑trading investors may be forced to liquidate shares.

While tech stocks remained under pressure from U.S. market trends, defensive telecom firms – Chunghwa Telecom, Taiwan Mobile and Far EasTone – rose strongly, each completing dividend‑fill after recent payouts. Market participants are advised to watch Asian openings and global tech sentiment for the next move.