Taiwan orders regulator to stabilise stock market

Taipei, Taiwan - The financial regulator has been instructed by the government to stabilize the stock market after a significant sell-off affected global markets, including Taiwan's tech-heavy index, the Taiex. Shares in TSMC, a leading chipmaker, dropped as much as 9.8%, contributing to a 9% decline in the Taiex during trading.

The precipitating factor was a collapse on Wall Street, driven by concerns that US Democrats would increase regulation of the artificial intelligence sector following their victory in the midterm elections. Premier Cho Jung-tai directed the Financial Supervisory Commission (FSC) to closely monitor both international and domestic stock market developments and to remain adaptable in determining appropriate stabilization measures for the domestic market.

Cho emphasized that Taiwan's economic fundamentals remained robust, and the potential of its industries continued to be strong. The FSC is scheduled to convene on Friday to deliberate on measures that could help stabilize the market, according to the Commercial Times. Taiwanese investors have been increasingly attracted to the local stock market this year, capitalizing on its soaring highs fueled by robust demand for AI technology.