Dragged by U.S. Tech Stocks, Taiwan Stocks Fall Below 45000
Selloff in U.S. technology stocks spread to Asia, with all four major U.S. indexes closing lower. The Nasdaq and Philadelphia Semiconductor Index both fell over 1%, while TAIFEX night session futures plunged 643 points to close at 45926. Taiwan stocks opened on the 30th down 228.54 points at 46139.79, after which selling pressure quickly expanded. Intraday low fell to 44726, at one point plunging over 1600 points, falling below the 45000 mark. The weighted index was last reported at 44859.09, down 1509.24, a decline of 3.25%.
Electronics Heavyweights Plunge, 台達電友達 Hit Limit-Down
Electronics stocks became the focus of selling and the hardest-hit area, with the broad market breaking below the半年線. 台達電2308 and 友達2409 both hit limit-down, 南亞1303 fell 7.05%, 奇鋐3017 fell 3.06%, and market leader 台積電2330 also fell 2.07%. Affected by heavy selling pressure in U.S. tech stocks, market risk aversion rose明显, and electronics stocks were heavily sold off.
Rising Tensions Around Hormuz Support Freight Rates
As electronics weakened, shipping stocks attracted funds against the trend. Among the three major container shippers, 萬海2615 rose 1.3%, 長榮2603 rose 2.87%, and 陽明2609 rose 1.61%. Shipping strength is related to recent escalation in the Middle East. Successive attacks on container ships and other vessels have been reported near the Strait of Hormuz, increasing regional shipping risks, pushing up oil prices and shipping costs. North America route freight rates remaining at high levels have gained support, further driving a rebound in Europe route rates. Container freight rates are now at rarely seen high levels outside the pandemic period, adding upside potential for shippers' Q4 operations.
Whether High Freight Rates Can Last Remains to Be Seen
The market believes the Middle East conflict increases carriers' costs for port changes, transshipment and vessel deployment, supporting high freight rates in the short term. However, whether shipping stocks can extend gains still depends on war developments and global freight demand. Market analysis notes weak European demand plus continued new vessel supply may limit upside for freight rates. Large logistics operators believe the Trump-Xi meeting is expected to extend the trade truce, and with U.S. port congestion, U.S. route freight rates are expected to remain high through late October. With October rates staying high, the three major container shippers' revenues are expected to maintain growth, with logistics operators 台驊 2636 and 中菲行5609 also likely to benefit.