Taiwan Stocks Plunge Nearly 1,000 Points as Financial ETF Bucks Trend to New High

陳陳柏宏 證券線記者2026-10-29 16:21

Browser TTS · no download

30-second brief

Hit by negative Google earnings, Taiwan stocks plunged nearly 1,000 points intraday on October 29, with electronics stocks sold off, while financial holding stocks held up the market. Yuanta MSCI Taiwan Financials 0055 closed at 52.5, a new closing high, up 6.6% in October, leading finance-inclusive ETFs.

Taiwan Stocks Plunge Nearly 1,000 Points as Financial Holdings Hold Up Market

Hit by negative Google earnings, Taiwan stocks saw short-term selling pressure emerge on the 29th, with electronics stocks sold off and the index plunging nearly 1,000 points intraday. However, financial holding stocks held up the market against the trend, driving Yuanta MSCI Taiwan Financials 0055 to 52.5, a new closing high. Amid October's volatile market, 0055 posted a gain of over 6%, becoming the performance leader among finance-inclusive ETFs.

Capital Gains and Spread Boost Financial Profits

Financial stocks have been strong recently, mainly benefiting from capital gains driven by the bull market and widened spreads amid tight funding, boosting financial sector profitability, which is expected to challenge new highs, and making financial stocks a supporting force amid recent volatility in Taiwan stocks.

October Finance-Inclusive ETF Race: 0055 Up 6.6% Tops Chart

Looking at finance-inclusive ETF performance since October, 0055 led with a 6.6% gain, followed by Uni-President Taiwan High Dividend Momentum 00939, Fuh Hwa FTSE High Dividend Low Volatility 00731, Sinopac Dividend Stock 00907 and Yuanta High Dividend Low Volatility 00713, with gains between 4.7% and 5.7%, showing that financial-related ETFs remained resilient during market volatility.

Up 64.3% This Year, Beating the Market; Institutions Bullish on Outlook

Extending the period to the global stock rebound since late July, 0055 rose 17.5%, compared with 7.9% for the TAIEX including dividends. Year-to-date, 0055 is up 64.3%, also above the 62.7% total return of the TAIEX, with the two showing a golden cross. Institutional analysts note that 0055 covers major Taiwan financial holding companies, helping investors capture core financial targets in one trade. The financial sector also benefits from the AI growth trend, driving proprietary trading gains, securities brokerage, bank deposit and loan business, and fee income, so financial stocks are not merely a laggard rotation play but deeply participate in the market rally. Institutions further point out that financial stocks have shifted from being seen as the last leg of a rally to becoming an important force lifting Taiwan's market value, with earnings support and reasonable valuation advantages. With strong Taiwan GDP growth this year and expectations for the 2027 outlook, the financial sector is expected to benefit from the economic upturn. Investors can watch financial stock earnings and risk characteristics, and allocate assets through financial-related ETFs.

FAQ

Why did 0055 hit a closing high as Taiwan stocks plunged?

On October 29, Taiwan stocks plunged nearly 1,000 points intraday, with electronics stocks sold off, while financial holding stocks held up the market, driving Yuanta MSCI Taiwan Financials 0055 to 52.5, a new closing high, mainly as the financial sector benefited from capital gains and spread contributions, with profitability expected to challenge new highs.

How did finance-inclusive ETFs rank in October?

Since October, 0055 led with a 6.6% gain, followed by Uni-President Taiwan High Dividend Momentum 00939, Fuh Hwa FTSE High Dividend Low Volatility 00731, Sinopac Dividend Stock 00907 and Yuanta High Dividend Low Volatility 00713, with gains between 4.7% and 5.7%.

How does 0055's year-to-date return compare with the market?

Since the late-July rebound, 0055 rose 17.5%, compared with 7.9% for the TAIEX including dividends. Year-to-date, 0055 is up 64.3%, above the 62.7% total return of the TAIEX, showing a golden cross.