Taiwan Stock Market Closes Lower Amid Cautious Sentiment

The Taiwan stock market closed down 0.59% at 19,411.22 points on Monday, April 22, 2024, with a turnover of NT$480.86 billion (US$14.73 billion). Taiwan was the only market in the Asia-Pacific region to lose points, as other major markets such as Japan, Hong Kong, South Korea, and Singapore saw gains.

The decline in the Taiwanese market came amid a rebound in the broader Asia-Pacific region, as investors looked to fresh data points out of China, Japan, and South Korea this week. The market opened lower but regained its footing before selling pressure re-emerged, led by losses in tech heavyweights like Taiwan Semiconductor Manufacturing Company (TSMC), which fell 1.07% to NT$742.00. TSMC's losses alone contributed about 65 points to the Taiex's decline.

Why this matters: The performance of the Taiwan stock market, particularly the tech sector, is closely watched as an indicator of global demand for semiconductors and technology products. Taiwan is home to some of the world's largest chip manufacturers, and their stock prices can reflect shifts in the global tech industry.

The broader market sentiment was cautious, and more losses are possible, with the 60-day moving average of around NT$723.00 seen as the nearest technical support for TSMC. The selling in TSMC also spread to other semiconductor and tech stocks. However, the petrochemical and textile sectors rose on higher crude oil prices, while the financial sector attracted bargain hunters due to its relatively low valuations.

Monday's decline in the Taiwan stock market highlights the cautious sentiment among investors, particularly in the tech sector. While TSMC's losses weighed heavily on the index, gains in petrochemical, textile, and financial stocks provided some support. Market participants will be closely monitoring upcoming economic data from major Asian economies to gauge the direction of the market in the near term.

Key Takeaways

• Taiwan stock market closed down 0.59% on April 22, 2024.
• Taiwan was the only market in Asia-Pacific to lose points, while others gained.
• TSMC's 1.07% drop contributed about 65 points to the Taiex's decline.
• Broader market sentiment was cautious, with TSMC's losses impacting other tech stocks.
• Petrochemical, textile, and financial sectors saw gains, providing some market support.