Taiwan stocks plunged by a thousand points, foreign investors withdrew over 1800 hundred million in two days
Dragged down by disappointing earnings from tech giants, US stocks closed lower across the board, Taiwan stocks weakened on October 30, the weighted index plunged 1156.5 points, losing the 46,000 mark. The three major institutional investors sold a combined 1398.44 hundred million yuan, including 1124.67 hundred million yuan from foreign investors, the seventh-largest single-day net sell in history, with a combined 1812.83 hundred million yuan sold in two consecutive days, and cumulative outflows in October reached 9943.17 hundred million yuan, approaching the one-trillion-yuan level.
On the US stock side, Alphabet earnings missed expectations, coupled with surging AI spending, raising investor concerns, the four major indexes closed lower across the board, with market value evaporating by nearly 5000 hundred million US dollars. The Nasdaq index fell 1.4%, the Philadelphia Semiconductor Index ended four straight gains, with funds shifting to other sectors. Meanwhile safe-haven demand weakened, and the US dollar index softened to around 101.6.
New Taiwan dollar opened below NT$32.6, reversed to close slightly higher at the close
The New Taiwan dollar exchange rate against the US dollar opened directly below the NT$32.6 integer level, touching NT$32.676 in early trading, down 1.84 jiao. Although exporters sold foreign exchange for support, the force was less than foreign investor outflows, and the Central Bank watched closely during the session and intervened several times, working with exporters to lift the exchange rate.
Before the close the exchange rate fluctuated sharply, staging a reversal, finally closing at NT$32.478, up 1.4 cents, with total trading value of 33.955 hundred million US dollars. For the week it rose 3 cents in total, up 0.09%, ending four consecutive weekly declines; the monthly line plunged 6.26 jiao, marking two consecutive monthly declines, with the rate still hovering around NT$31.7 at the start of the month and falling back to around 32.7 in the middle of the month.
Central Bank rarely spoke to stabilize the currency, banks estimate it could test NT$32.8
Looking back at October, as Taiwan stocks fell and foreign investors remitted funds out aggressively, the New Taiwan dollar showed a weak pattern. The Central Bank rarely issued a statement during the session, emphasizing that Taiwan stocks were relatively resilient and that New Taiwan dollar fluctuations were more stable than other major currencies, but under capital-flow pressure, the rate still fell back to around the previous low of 32.7.
Bank analysts said the New Taiwan dollar is most affected by capital flows, and with market concerns about AI investment remaining, the rate could test the NT$32.8 level. The Central Bank has frequently acted to stabilize the currency recently, but with daily declines approaching 2 jiao, whether it will adopt other adjustment measures is closely watched by the market.