Index slumps to 3-month low
The TAIEX closed at 41574.72 on November 5, down 1374.19 points or 3.2%, the lowest since July 31, with the cumulative pullback reaching 8000 points. The TWSE said the market has been under clear pressure recently amid a pullback in international technology stocks and volatility in global financial markets. Concerns over an artificial intelligence bubble and slowing capital expenditure, along with a big Democratic win in the US midterm elections, hit large-cap stocks hard and severely dented investor confidence.
Smaller pullback than US, Korea, Japan and Hong Kong
The TWSE noted that despite recent volatility in international equities, Taiwan stocks have remained relatively resilient. Through November 4 this year, Taiwan stocks were up 48.29% cumulatively, leading major international markets. Compared with the 2026 highest closing levels of major markets to November 4, Taiwan pulled back 13.80%, clearly less than the 29.83% for the US Philadelphia Semiconductor Index and 37.64% for Korea's KOSPI Index, and also below the 14.06% for Japan's Nikkei 225 Index and 14.48% for Hong Kong's Hang Seng Index, showing relative resilience during the correction. In addition, average daily turnover in the centralized market has been nearly NT$1 trillion this year, with ample market liquidity.
Exports and export orders both hit record highs
The TWSE stressed that Taiwan's resilience reflects sound economic and corporate fundamentals, with continued growth in the overall economy and listed-company earnings. On October 30, the Directorate-General of Budget, Accounting and Statistics estimated third-quarter Year 115 GDP growth at 14.36%, with first-three-quarter growth at 14.22%, the highest for the same period in half a century. September exports reached US$872.2 billion, a record monthly high, up 60.9% year-on-year; export orders reached US$1142.1 billion, also a record high, up 62.4% year-on-year, showing continued strong external demand. Domestic and foreign institutions have repeatedly raised their forecasts for Taiwan's full-year economic growth, with the DGBAS raising it to 11.05%, the highest in nearly 39 years, the central bank raising it to 11.48%, and the International Monetary Fund raising it to 10.7%, the highest in the Asia-Pacific region, reflecting robust AI demand, strong export momentum and expanding private investment.
Next-year growth seen above 5% with mild prices
Looking to next year, the DGBAS and the central bank forecast economic growth of 6.04% and 5.82% respectively despite a high base, with growth momentum expected to continue. On prices, the consumer price index rose an average 1.94% year-on-year in the first three quarters of Year 115, with full-year CPI inflation forecast at about 2%, indicating mild domestic prices amid rapid economic growth. The TWSE said both economic and corporate fundamentals will continue to underpin market confidence, and Taiwan stocks remain sound and resilient.