Taiwan stock index slumps 8.6%, biggest drop in history

On Wednesday, May 12, hit by multiple negative factors such as the intensification of the epidemic, China’s Taiwan-weighted index dived intra-day, led by technology stocks, and once fell heavily by more than 8%.

In a thrilling 99 minutes (9:46 to 11:25), the Taiwan stock index index killed a sharp 1,387 points and fell by a maximum of nearly 1,418 points in today’s session, setting a record for the largest drop in history.

This morning, the Taiwan stock market set a total of three major records, including the largest drop in history of 1,417.86 points, the largest drop in history of 8.55% and the largest market value evaporated nearly 4 trillion Taiwan dollars.

Among them, TSMC and Hon Hai had the biggest drag on the index. TSMC fell more than 6%, Hon Hai fell more than 7%.

More than 100 stocks touched down during the day.

The Taiwan-weighted index fell 10% from its April high and entered an adjustment range.

Earlier media reports said Foxconn’s Indian plant cut production by half due to the new crown epidemic.

According to Xinhua News Agency, Taiwan added seven new confirmed cases of local New Guan pneumonia on the 11th, six of which have an unknown source of infection. The head of Taiwan’s regional epidemic command center said on the 11th that Taiwan has entered the community infection stage. The Taiwan dollar depreciated to 28.02 against the U.S. dollar, hitting an intraday low of more than two weeks.

Local media in Taiwan reported that Taiwan may tighten epidemic restrictions as the epidemic spreads and may enter alert level 3, but it is not expected to be announced today.

In addition, MSCI announced today that it reduced the weighting of Taiwan stocks in the Emerging Markets Index to 13.95%, the ninth consecutive downgrade, and the latest weighting will take effect at the close of trading on May 27.