US Midterms Drive Volatility, Taiwan Stocks Stage Major Reversal
Vote counting in the US midterm elections gradually became clearer, with the Democratic Party making major gains in congressional races, the Republican Party facing loss of control of the House of Representatives, several key Senate seats also flipping, and the Trump administration potentially losing its full grip on Congress, as global financial markets continued to digest the political shift. Taiwan stocks staged a major reversal on the 4th, with the TAIEX plunging 1451.72 points intraday to 41855.82, then recovering as declines in electronics heavyweights narrowed and buying returned.
Heavyweights Stabilize, Index Rebounds Over 1,000 Points
As of 1 p.m., the TAIEX rebounded 1102.79 points to 42958.61, narrowing the decline to 348.93 points or 0.81%, with an intraday high-low swing of 1885.72 points and turnover exceeding NT$1 trillion in fierce bull-bear trading. Large electronics heavyweights gradually stabilized, supporting the midday rebound, though whether short-term selling pressure has been absorbed remains to be seen.
Electronics and Financial Heavyweights Narrow Declines
Among electronics heavyweights, TSMC (2330) was quoted at NT$2275, down NT$20 or 0.87%, up NT$40 from the intraday low of 2235; MediaTek (2454) was quoted at NT$3670, down NT$5 or only 0.14%, rebounding NT$215 from the intraday low of 3455; Hon Hai (2317) was quoted at NT$240.5, down NT$5 or 2.04%, up NT$4 from the low of NT$236.5. Delta Electronics (2308) fell to NT$1160 intraday before recovering to 1220, down 3.94%, up NT$60 from the low; ASE Technology Holding (3711) was quoted at NT$624, down 1.3%, up NT$29 from the intraday low of NT$595.
In other groups, Quanta (2382) was quoted at NT$301.5, down 3.21%, slightly up from the intraday low of NT$299; Asia Vital Components (3017) was quoted at 2850, down 2.9%, rebounding NT$180 from the low of NT$2670. Elite Material (2383) was quoted at 4550, down 3.53%, up NT$250 from the intraday low of NT$4300; Unimicron (3037) was quoted at NT$888, down 1.55%, rebounding NT$69 from the low of NT$819. Nanya Technology (2408) was quoted at NT$397, down 3.41%, up NT$21.5 from the intraday low of NT$375.5; UMC (2303) was quoted at NT$104, down 0.97%, Yageo* (2327) was quoted at NT$446, down 1.55%. Wiwynn (6669) fell only 0.28%, Largan Precision (3008) fell 0.91%. Fubon Financial (2881) was quoted at NT$154, flat, Cathay Financial (2882) fell 1.33%, CTBC Financial (2891) fell 1.48%, Taishin Shin Kong Financial (2887) fell 2.55%; Nan Ya Plastics (1303) fell 0.92%, Chunghwa Telecom (2412) fell 1.26%. The market will focus on the US midterm election results, US tech stock trends, whether heavyweights can stabilize, and the post-market net buying and selling by the three major institutional investors, especially foreign investor moves and margin trading changes.