Taiwan’s stock exchange opened for trading on Tuesday after Taiwan’s national day long weekend. Things don’t look good as shares have continued to dip since the market reopened.
Monitors showing stock prices display nothing but a sea of green. If you’re from the US, you might think that’s a good thing, but in Taiwan, green means prices are declining.
After Taiwan’s national day long weekend, the country’s stock markets reopened…and not to good news. Taiwan’s stock market is plunging.
Analysts say that the reasons for the poor performance have nothing to do with Taiwan. Stock analyst Li Yung-nien says international chaos is what’s driving the downturn. He thinks the ongoing war in Ukraine, the rising US dollar, and inflation around the world have affected Taiwan’s stock prices.
Another concern for stock traders is the semiconductor industry. Chip company stocks have fallen considerably over the past few days. Taiwan’s biggest semiconductor manufacturer and most valuable firm — TSMC — may see its market cap dip below NT$10 trillion.
Li says the hit to Taiwan’s semiconductor industry is due to the US stepping up regulations on chips. The stricter oversight is part of the US’ attempt to reign in China’s own semiconductor industry.
With so many factors affecting stock prices here in Taiwan, it seems the country’s fate is tied closely to what happens in the rest of the world. However, it can’t be easy for Taiwanese shareholders to realize that their investments are out of their, and Taiwan’s, hands.