Taiwan’s Taiex index falls 0.9% to 35,095.09 at close
TL;DR
Taiwan's Taiex index fell 0.9% to 35,095.09 due to U.S. tariff concerns and market volatility, despite recent gains driven by AI demand and strong exports. The index has risen significantly year-to-date but faces uncertainty from trade policies and projected declines.
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Taiwan’s Taiex index falls 0.9% to 35,095.09 at close
Taiwan’s Taiex Index Falls 0.9% to 35,095.09 Amid Tariff Concerns and Market Volatility
March 2, 2026
Taiwan’s benchmark Taiex index closed at 35,095.09 on March 2, 2026, marking a 0.9% decline from the previous session. This follows a record high of 35,579.34 in February 2026, driven by optimism around artificial intelligence (AI) demand and partial U.S. tariff exemptions for key chipmakers. Despite the recent pullback, the index has risen 9.58% over the past month and 53.62% year-to-date.
The decline reflects renewed concerns over U.S. trade policies. Earlier in February, the index tumbled nearly 10% after new tariffs targeting Taiwan’s $32 billion trade surplus were announced, triggering circuit breakers and a temporary short-selling ban. While semiconductors were not directly impacted, the broader electronics supply chain—critical to Taiwan’s economy—remains vulnerable to global trade tensions. Shares of major exporters such as Taiwan Semiconductor Manufacturing (TSMC) and Hon Hai Precision Industry (Foxconn) fell sharply in response to the tariffs.
Positive fundamentals, however, continue to underpin the market. Taiwan’s exports surged 42.0% year-on-year in July 2025, fueled by strong demand from the U.S., ASEAN, and China. The benchmark index has rebounded approximately 40% from its April 2025 low, supported by AI-driven technology sector gains.
Analysts anticipate further volatility. The Taiex is projected to trade at 33,031.05 by the end of the quarter and 28,484.20 in 12 months, according to Trading Economics models. Government measures, including stabilization efforts and regulatory interventions, aim to mitigate short-term turbulence.
Investor sentiment remains mixed, balancing optimism over long-term growth in AI and semiconductor demand against near-term risks from trade policy shifts. The index’s trajectory will likely hinge on global economic signals, including the Federal Reserve’s interest rate outlook and the evolution of U.S.-China trade dynamics.
Trading Economics, Taiwan Stock Market Data: Taiwan Stock Market Index (TWSE) Historical Performance and Trade Developments
