Taiwan stocks enter retracement! Foreign media: Don’t rush to panic or buy the dip, and don’t go against the trend

Foreign media reported that as the global sell-off in artificial intelligence stocks intensifies, Taiwan's stock market is about to enter a technical retracement stage.

Taiwan's stock market benchmark index is about to enter a technical retracement phase as the global sell-off in artificial intelligence stocks intensifies. On Friday (30th), Taiwan's weighted index fell by 3.5%, falling to the lowest level since August 25th. The index has fallen more than 10% from its all-time high set on Oct. 6 as investors worry about rising borrowing costs, huge spending on artificial intelligence and some corporate earnings falling short of expectations.

Bloomberg News reported that the sell-off showed that the market has become deeply concerned about artificial intelligence trading. Many investors believe that Taiwan has a more complete technology supply chain and is more suitable for investing in artificial intelligence themes than South Korea. Even so, the Taiwan Index was not immune to the pullback. U.S. earnings reports were disappointing again overnight, accelerating the trend of funds moving away from artificial intelligence stocks and toward safe-haven assets such as Treasury bonds.

Vey-Sern Ling, managing director of Union Bancaire Privee, said that the sell-off in Taiwan's stock market was mainly affected by the trend of global artificial intelligence stocks, which triggered fluctuations in market sentiment. Although Taiwan's fundamentals have improved, even if market sentiment may go in the wrong direction, do not buck the trend.

He also said that hyperscale data center operators' continued investment in capital expenditure plans and the improvement of corporate bottom-up visibility have strengthened the reasons for holding Taiwanese assets.

TSMC and Delta Electronics were the main drag on TSMC's decline on Friday, falling 2.3% and 9.8% respectively. MediaTek fell 5.9%.