Taiwan share prices fell 4.83% Monday. The TAIEX dropped nearly 7.5% in mid-session due to the manic sell-off triggered by a global plunge in share values.
Deputy Finance Minister Wu Tang-chieh said Monday that the government does not rule out the possibility of activating the national stabilization fund.
Presidential Office Spokesman Charles Chen Monday quoted President Ma Ying-jeou as saying that the government must be well-prepared for an all-out war against the uncertainties lying ahead.
Meanwhile, National Development Council (NDC) Minister Woody Duh said the plunge is different from the 1997 Asian financial crisis as the main causes of the current downturn include falling oil prices, a global economic slowdown and worse-than-expected market performance. Duh said other factors such as the uncertainties over China’s economy and Taiwan’s sagging exports have also played a role.
A Taiwanese stock analyst has also said that the recent sell-off in US stocks, China’s economic slowdown, the depreciation of the yuan and the withdrawal of capital from emerging Asian markets are factors as well.