Sharp US Selloff Drags TAIFEX Night Session Lower
The four major US indexes weakened across the board on October 30, with Intel falling 28.58%, the Philadelphia Semiconductor Index falling 7.20%, and TSMC ADR falling 5.95%. Affected by this, TAIFEX night futures fell 867 points or 1.91% to 44443, while TSMC futures fell 87 or 3.66% to 2289, and the market expects Taiwan stocks to face catch-up selling pressure at the open on November 2.
Index Tests Support as Chips Settle
Since late October, Taiwan stocks have been affected by international geopolitical variables, high-level volatility in US stocks, and foreign investor adjustments, with the TAIEX showing a high-level consolidation pattern. When the index tested key moving-average support, low-level buying showed resilience, and short-term floating shares were washed out. As foreign-investor futures shorts gradually narrowed and quarterly earnings announcements entered the final countdown, market reaction to negative news has become increasingly muted, and the index is brewing a technical stabilization and rebound opportunity.
At the start of early November, after consolidation, the daily KD indicator has the conditions for an upward crossover rebound at low levels. The market is characterized by heavyweight stocks pulling back to consolidate, while small and mid-cap growth stocks and low-base turnaround groups are active. The strategy focuses on low-base catch-up gains, operational turnarounds, and rigid industrial demand, watching targets with concentrated chips and fundamental support.
Industry Focus on Five Turnaround Stocks
Qiangxin is a domestic wire rod and stainless steel fine drawn wire manufacturer, with products used in automotive fasteners, precision screws and industrial structures, and has expanded into electropolished stainless steel pipes and fittings, entering the semiconductor high-purity gas pipeline system supply chain. Mingyuan Precision focuses on semiconductor process equipment subsystem technical services, equipment maintenance and key component sales, benefiting from advanced-process expansion by the leading foundry, with increased demand for high-concentration ozone generator systems and equipment cleaning and maintenance.
Dongjie Information, a software services company under the TECO Group, specializes in enterprise resource planning, customer relationship management and cloud application integration, benefiting from the spread of generative AI and corporate ESG carbon-inventory regulations, as manufacturing and service industries adopt smart factories and cloud system upgrades. Wei Chuan is a domestic food processing and dairy brand, owning products such as Lin Feng Ying, Bernachon and Daily C, with the year-end dining gathering peak season approaching, raw material cost pressure easing, and a continued strategy of high value-added refrigerated products. Dashi Technology, affiliated with the Tatung Group, focuses on network communications, AI computing infrastructure, cloud services and cybersecurity protection, benefiting from government agencies and financial and medical enterprises expanding investment in AI computing center construction and data backup, with increased software-hardware integration project orders.