TAIEX Trades at Over 4-Month Low, Heads for 4th Weekly Loss

The TAIEX, Taiwan’s benchmark stock index, slumped 2,700 points, or 6.5%, to 38,874 in Friday morning trade, extending losses for a seventh consecutive session and touching its lowest level since April 23, tracking declines on Wall Street overnight due to a plunge in AI-related stocks amid worries about the implications of the Democrats' sweeping victory on Tuesday. All subsectors traded in the red, led by electronic technology and producer manufacturing, which plunged by 8.1% and 8.6%, respectively. Persistent concerns over massive spending on AI infrastructure continued to pressure sentiment, with TSMC, the world’s largest contract chipmaker, which accounts for more than 40% of the market’s total value, slumping 5.6%. Other heavyweight tech stocks also slumped, including MediaTek (-6.2%), Hon Hai Precision (-6.4%), and Delta Electronics (-9.7%). For the week, the index is heading for a 14.0% plunge, which would mark its fourth straight weekly loss amid a tech selloff.