Shares on the Taiwan Stock Exchange closed lower but showed resilience amidst U.S. market turbulence. The market sentiment was cautious following U.S. President Donald Trump’s confirmation of tariffs on Canadian and Mexican imports. The Taiex, the weighted index of the Taiwan Stock Exchange, ended the session down but managed to recover from earlier significant losses. Despite opening 1.09 percent lower due to declines in the U.S. markets, the index fluctuated throughout the day before closing at 22,596.88, down 0.70 percent. The day’s turnover stood at NT$400.21 billion (US$12.15 billion).

The initial market decline was triggered by Trump’s tariff announcements, which had repercussions on global markets. However, bargain hunters entered the market, particularly targeting key electronics companies, leading to a partial rebound by the end of the trading day. The electronics sector, although down by 0.80 percent, saw some notable performers, including MediaTek Inc. and Quanta Computer Inc., which posted gains amidst the overall downturn.

In response to the tariff concerns, Taiwan Semiconductor Manufacturing Co. (TSMC), a significant player in the market, saw a decline of 1.96 percent despite Trump’s statement that TSMC would be exempt from tariffs following its commitment to invest an additional US$100 billion in the U.S. This news had a positive impact on TSMC’s suppliers, with companies like United Integrated Services Co. and Scientech Corp. recording notable increases.

The impact of Trump’s tariff policies extended beyond the tech sector, affecting traditional industries as well. Companies in sectors such as food, steel, and cement experienced declines, reflecting the broader market uncertainty. The financial sector also faced challenges, with companies like Fubon Financial Holding Co. and Cathay Financial Holding Co. registering losses.

Foreign institutional investors played a significant role in the day’s trading, selling a net NT$57.04 billion worth of shares on the main board. Analysts cautioned that the market remained technically fragile, advising investors to remain vigilant for potential rebounds and further developments in response to the evolving global trade landscape.

The market’s ability to recover from early losses amidst external volatility underscores the resilience of the Taiwan Stock Exchange and its capacity to navigate challenging market conditions. As geopolitical events continue to influence global markets, investors are advised to stay informed and adapt their strategies to mitigate risks and capitalize on emerging opportunities in the dynamic financial landscape.