Taiwan Equities Face Downward Pressure Following Wall Street Sell-Off

The Taiwan Stock Exchange (TSE) is expected to continue its downward trajectory on Monday, following a three-session decline that saw the index stumble nearly 675 points, or 4.8%. The index currently sits just above the 21,600-point mark, reflecting broader fragility in Asian markets. The regional weakness is largely a reflection of deteriorating global economic sentiment and a sharp correction in U.S. equity markets. On Friday, the TSE slumped 1.59% to close at 21,602.89, with trading ranging between 21,525.05 and 21,836.16. Technology and industrial heavyweights bore the brunt of the sell-off. Hon Hai Precision plunged 4.04%, Delta Electronics cratered 3.95%, and Formosa Plastics dropped 3.72%. Other notable losses included Largan Precision, which surrendered 3.04%, and MediaTek, which weakened 1.35%, while Taiwan Semiconductor Manufacturing Company (TSMC) shed 0.63%. The decline follows a severe session on Wall Street, where the NASDAQ tumbled 2.70% and the S&P 500 dropped 1.97%. Investors reacted poorly to core consumer price data that slightly exceeded expectations and revised University of Michigan data showing a sharper decline in consumer sentiment for March. In the energy sector, WTI crude futures settled at $69.36 per barrel on Friday, down 0.8%. Despite the daily dip, the contract maintained a weekly gain of 1.6% amid prospects of tighter supplies resulting from U.S. sanctions on Iran and Venezuela.