Taiwan stocks slumped the most since March last year as concern over further tightening of coronavirus-linked restrictions and a global tech selloff spooked investors.
The Taiwan Stock Exchange Weighted Index finished the session 4.1% lower after slumping as much as 8.6% in morning trading, the worst intraday loss since 1969. Having fallen 9.6% from an April high, the gauge narrowly missed a technical correction. Heavyweight Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co. were among the biggest drags, down 1.9% and 4.7%, respectively, on Wednesday.
The selloff marks a sharp turn for the equity index which ranked among Asia’s best performers before it started to retreat at the end of April. Taiwan will strengthen COVID-19 control measures at businesses around Taiwan and those who fail to comply will face fines or closure of businesses, health minister Chen Shih-chung said at briefing in Taipei this afternoon.