On Monday, TSMC stock declined as Taiwan’s stock index faced its worst day in 57 years as tech-heavy Asian gauges took the brunt of a selloff amid the US recession.
The second-most valuable firm stock closed the session by plummeting -5.26% to $149.86 apiece. It continued to slide by -7.72% in pre-market trading to $138.30.
Meanwhile, the Taiex index ended -8.40% lower in the country, signaling its worst selloff in 57 years. The dip was driven by artificial intelligence (AI) chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which also faced a record-high daily decline.
The price action underscores the swift shift in sentiment from the potential of AI to worries about a US recession and disappointing earnings, including Intel Corp.
Moreover, Taiwan, South Korea, and Japan, Asia’s worst stock performers on Monday, illustrate the susceptibility of their export-driven companies to the global economic landscape.
Analysts noted that it is difficult to anticipate when the decline will halt. As a result, the stock exchange chief said the bourse would work with legislators to maintain stability and calm traders.
Experts also revealed that TSMC’s fundamentals remain strong despite reportedly delayed Nvidia GB 200 chip deliveries.
Taiwan Stocks Dip on Sluggish TSMC, More Weakness Outlook
Taiwan stocks have battered on a weak TSMC record-high dip as analysts anticipate the decline will persist into the next two days.
According to reports, Taiwan Stock Exchange President Lih-Chung Chien stated that stability measures will be implemented based on market conditions. The exchange is awaiting guidance from regulators.
Meanwhile, on Monday, Japan’s benchmark gauges slid by over -12.00%, with Topix and Nikkei also joining the weak markets.
Furthermore, South Korea’s Kospi Index has plummeted by about -9.00%, setting its worst trading day since 2001.
JK Guo, Taiwan’s Minister of Economic Affairs, also stated that traders should prepare for a possible market crash.
