Taiwan Equities Retreat Amid Geopolitical Tensions and Oil Price Surge

The Taiwan stock market extended its losing streak into a second session, with the benchmark index sliding nearly 330 points, or 0.8%, to close at 39,303.50. The market experienced volatility throughout the day, trading between a low of 38,896.30 and a high of 39,548.18. The downturn reflects a broader softening across Asian markets, driven primarily by escalating tensions in the Middle East and a persistent blockade of the Strait of Hormuz. These geopolitical risks have pushed West Texas Intermediate (WTI) crude for June delivery up 6.79% to $106.72 per barrel, raising concerns over inflationary pressures and energy costs. Semiconductor giants felt the brunt of the sell-off, with Taiwan Semiconductor Manufacturing Company (TSMC) dropping 1.58% and MediaTek declining 1.53%. Other notable moves included a sharp 6.28% plunge for Catcher Technology, while Fubon Financial provided a rare bright spot, rallying 3.05%. Sentiment remained cautious as Wall Street ended mixed, with traders hesitating ahead of earnings reports from Alphabet, Amazon, Meta, and Microsoft. Additionally, the Federal Reserve's decision to maintain current interest rates—marked by an unusually divided vote—has left investors seeking clearer direction. Attention now shifts to Taiwan's preliminary Q1 GDP figures. The economy previously posted a strong year-on-year growth rate of 12.65%, and the upcoming data will be critical in determining if the domestic economy can offset global headwinds.