Taiwan stocks rebound after record plunge

Taiwan stocks rebounded on Tuesday after a sharp drop on Monday, led by contract chipmaker TSMC which gained 8 per cent. However, investor sentiment remains cautious due to concerns about the tech sector and the US economy.

The main index closed 3.4 per cent higher at 20,640.44 points, recovering from the previous day’s record 8.4 per cent decline amid global market volatility and recession fears in the US investors are seeking safer assets amidst the uncertainty.

“Investors are mostly concerned about the U.S. economy and the rapid rise of the yen. So yesterday’s plunge was inevitable,” said Jeff Chang, chairman of Cathay Securities Investment Trust, which oversees more than $30.3 billion in client assets.

Other major tech stocks also posted gains, with Mediatek climbing 8.5 per cent and Quanta rising 3.1 per cent.

Premier Cho Jung-tai reassured the public on Tuesday, stating that Taiwan’s economic fundamentals are “very solid.” Authorities will continue to monitor the market situation closely.

President Lih-Chung Chien of the Taiwan Stock Exchange reiterated the bourse’s commitment to maintaining market stability, working with regulators when necessary.

Attribution: Reuters