Amidst the recent market turbulence in the United States triggered by President Donald Trump’s announcement of tariffs on imports from Canada and Mexico, the Taiwan Stock Exchange (TWSE) has displayed resilience. On Tuesday, Taiwan shares closed lower but managed to recover from earlier losses, reflecting cautious sentiment following the U.S. market fluctuations.

The Taiex, Taiwan’s weighted index, concluded the session at 22,596.88 points, down by 0.70 percent. The market opened with a 1.09 percent decline in response to the negative performance of U.S. indices, with the Dow Jones Industrial Average falling by 1.48 percent and the Nasdaq index by 2.64 percent due to Trump’s tariff decisions.

Despite the initial downturn, the Taiex experienced a partial recovery as bargain hunters stepped in, particularly targeting select electronics giants. The electronics index closed at 1,225.16, showing a decrease of 0.80 percent. Notably, companies like MediaTek Inc. and Quanta Computer Inc. managed to buck the trend, with MediaTek Inc. witnessing a 2.38 percent increase and Quanta Computer Inc. rising by 3.19 percent.

Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in the market, faced a 1.96 percent decline, closing at NT$1,000.00. Trump’s statement regarding TSMC’s exemption from tariffs after pledging a substantial investment in the U.S. created some market optimism. However, concerns lingered among investors about potential future challenges from Trump despite the investment commitment.

The positive news surrounding TSMC’s investment plan had a ripple effect on its suppliers, with companies like United Integrated Services Co. and Scientech Corp. witnessing significant stock price increases. On the other hand, non-tech stocks, particularly in the old economy sector, faced downward pressure. Uni-President Enterprises Corp., China Steel Corp., and TCC Group Holdings Co. experienced declines.

In the financial sector, Fubon Financial Holding Co. and Cathay Financial Holding Co. were among the companies that saw a decrease, contributing to the sector’s overall 0.98 percent fall. The TWSE reported that foreign institutional investors sold a net NT$57.04 billion worth of shares on the main board, underscoring the cautious approach of international investors in the current market environment.

Despite the challenges posed by the U.S. market volatility, the Taiwan Stock Exchange’s ability to weather the storm and exhibit resilience in the face of external pressures showcases the stability and strength of Taiwan’s financial markets. Investors are advised to remain vigilant and adaptable in response to the evolving global economic landscape to navigate uncertainties effectively.