Stock exchange double kill! Taiwan stocks plummeted by more than 3,000 points, setting a record, and the New Taiwan dollar broke through 33 yuan
The four major U.S. stock indexes plummeted, and Taiwan stocks hit their biggest intraday drop in history, with the New Taiwan dollar hitting a low of 33.04 yuan.
Quick Look
- After the U.S. midterm elections, the four major U.S. stock indexes plummeted, and the selling pressure spread to Asia.
- Taiwan stocks plummeted 3,737.67 points, the largest intraday drop in history, and the New Taiwan dollar fell below the 33 yuan mark, hitting a low of 33.04 yuan, a new low in more than a year and a half.
AI-generated summary
Why It Matters
After the U.S. midterm elections, investors worried that the expansion of AI data centers would face stricter scrutiny. The four major U.S. stock indexes plummeted, and the selling pressure extended to the Asian stock and currency markets.
Stock exchange double kill! Taiwan stocks plummeted by more than 3,000 points, setting a record, and the New Taiwan dollar broke through 33 yuan (photo by reporter Chen Meiying)
[Reporter Chen Meiying/Taipei Report] After the U.S. midterm elections, the market is worried that the expansion of artificial intelligence (AI) data centers will face stricter scrutiny. The four major U.S. stock indexes plummeted, and the selling pressure spread to the Asian stock and currency markets today (6th). Taiwan stocks jumped above 40,000 points and plummeted 3,737.67 points during the session, the largest intraday drop in history. The exchange rate of the New Taiwan dollar against the U.S. dollar also fell below the 33-yuan integer level in one fell swoop, hitting a low of 33.04 yuan, a heavy depreciation of 1.64 cents, and the exchange rate hit a new low in more than a year and a half.
After the U.S. Democratic Party won a big victory in the midterm elections, investors re-evaluated the investment prospects of AI data centers, and chip and data center concept stocks were the first to bear the brunt. The Dow Jones Industrial, S&P 500 and Nasdaq indexes all plummeted, the Philadelphia Semiconductor Index plunged 12.25%, and TSMC ADR also fell 10.78%. This morning, many electronic equity stocks and high-priced stocks with a price of 1,000 yuan in Taiwan stock market hit their daily limits.
The New Taiwan dollar was close to 33 yuan during the session yesterday. In the afternoon, due to foreign currency selling by exporters and adjustments by the central bank, the decline converged, and finally closed at 32.876 yuan. Cai Jiongmin, director of the Central Bank's Foreign Exchange Bureau, said yesterday that the amount of foreign exchange sales by exporters has increased in recent days, and reminded manufacturers with year-end foreign exchange settlement needs to do so in batches in advance to avoid concentrating on December or January next year. He also suggested that exporters re-evaluate the Fed's policy and the trend of the U.S. dollar after the U.S. election, and don't just wait for a better selling price.
However, as the decline in Taiwan stocks intensified this morning, the New Taiwan dollar depreciated 4.4 cents at 32.92 yuan, and the depreciation expanded rapidly. The 33 yuan mark it held yesterday fell this morning.
What to Watch
AI outlook — possibilities, not facts
Taiwan stocks and the New Taiwan Dollar will face continued selling pressure in the short term
Likely · Within days
Open Questions
- What will be the subsequent trend of Taiwan stocks and the New Taiwan Dollar?
- What adjustment measures will the central bank take?
- The specific impact of the U.S. midterm election results on the AI industry
