Taiwan orders market regulator to stabilise plunging stock exchange

Taiwan's government has instructed its securities regulator to implement stabilisation measures following a sharp market downturn that saw semiconductor heavyweight Taiwan Semiconductor Manufacturing Company lose as much as 9.8% of its value during trading.

The steep decline in TSMC shares, which represent a significant portion of the Taiex's weighting, triggered a cascading effect across the broader market. The main exchange index fell as much as 9% during the session, raising concerns among policymakers about the stability of the trading environment.

The move underscores growing anxiety in Taipei regarding market volatility at a time when Taiwan's semiconductor sector remains central to both the island's economy and global tech supply chains. TSMC's share price carries outsized influence on the Taiex, making significant movements in the company's valuation particularly consequential for overall market performance.

Regulatory intervention typically involves measures such as circuit breakers, trading halts, or increased monitoring to restore market confidence. The regulator's response is expected to focus on preventing panic selling and maintaining orderly trading conditions during the period of heightened volatility.

The incident highlights the sensitivity of equity markets in the region to macroeconomic headwinds and shifts in investor sentiment toward technology stocks globally.