Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-09-11
The TAIEX experienced significant volatility this week, surging to a second-highest closing level on Monday before retreating sharply on Thursday as foreign investors executed a massive sell-off of nearly NT$90 billion. The Taiwan dollar weakened against the U.S. dollar, reversing earlier gains, as foreign funds exited equities ahead of key U.S. economic data.
Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-09-11
Top developments
Foreign Investors Dump Near NT$90 Billion; TAIEX Breaks Below 47,000
On Thursday, September 11, foreign investors aggressively reduced their holdings in the Taiwan stock market, selling a net total of NT$89.27 billion. This massive outflow pressured the TAIEX to fall 242.87 points to close at 46,940.49, breaching the psychological 47,000 level for the first time in several sessions. The sell-off was concentrated in the electronics sector, with panels, memory, and semiconductor stocks bearing the brunt of the selling pressure. This sharp reversal comes after a strong start to the week, signaling caution among institutional players ahead of U.S. inflation data
TAIEX Hits Second-Highest Close on Semiconductor Rally
Earlier in the week, on Monday, September 7, the TAIEX surged over 700 points to close at 47,326.27, marking its second-highest level on record. The rally was driven by large-cap semiconductor stocks, particularly TSMC, following a strong performance by their U.S. counterparts in the previous week. Trading volume reached NT$941.4 billion, reflecting intense buying interest in AI-related supply chains and major tech indices. Foreign investors were net buyers during this session, helping to lift the index past previous resistance levels
Taiwan Dollar Weakens as Funds Exit Ahead of U.S. CPI
The New Taiwan Dollar (TWD) closed at NT$31.505 against the U.S. dollar on Wednesday, September 9, after the greenback shed NT$0.030. However, by Thursday, September 11, the TWD faced renewed depreciation pressure as foreign investors withdrew approximately USD 2 billion from the equity market. The currency had previously strengthened to NT$31.63 on Friday, September 5, but the subsequent equity sell-off reversed this trend. The Central Bank of the Republic of China (CBC) continues to monitor exchange rate volatility, adhering to its mandate to intervene only against disorderly movements
TSMC Falls from Intraday High Amid Market Caution
On Wednesday, September 9, the TAIEX edged up slightly despite TSMC shares falling from their intraday highs. TSMC, the index's largest weight, dipped as low as NT$2,460 before recovering slightly, while financial stocks dragged down the broader market with a 1.6% decline. Dealers noted that investors adopted a wait-and-see approach ahead of the scheduled release of U.S. inflation data later in the week. Despite the pullback, TSMC remains a focal point for global AI demand, with recent analyses suggesting continued strength in its stock price through 2027
Local view
Local media outlets like Storm Media and United Daily News highlighted the sudden shift in foreign investor sentiment, describing the NT$89.27 billion sell-off as "aggressive withdrawal" from electronics sectors. Ani Econ (Storm Media) noted that while foreign funds fled panels and memory chips, some institutional capital rotated into defensive sectors or cash equivalents. UDN reported that the foreign outflows were partly driven by risk-off positioning before U.S. macroeconomic releases, with the central bank allowing the TWD to fluctuate within a managed range rather than intervening heavily to prop up the currency
Context & numbers
- TAIEX Close (Sept 11): 46,940.49 (-242.87 points)
- TAIEX Close (Sept 7): 47,326.27 (+775.14 points), 2nd highest on record
- Foreign Net Selling (Sept 11): NT$89.27 billion
- Foreign Net Buying (Sept 9): NT$13.269 billion (prior to Thursday's sell-off)
- TWD/USD Rate: Closed at NT$31.505 on Sept 9; weakened further on Sept 11 due to fund outflows
- Turnover (Sept 7): NT$941.4 billion
On the radar
- U.S. CPI Data Release: Investors are closely watching upcoming U.S. inflation figures, which were cited as a primary driver for the cautious trading and subsequent sell-off in Taipei this week.
- Central Bank Intervention Watch: Following the rapid depreciation of the TWD on Thursday, market participants are monitoring the CBC for any signs of verbal or actual intervention to stabilize the currency.
- Semiconductor Sector Rotation: With foreign funds exiting memory and panel stocks, watch for potential rotation into other AI-linked segments or defensive financials in the coming sessions.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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