Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-27
Taiwan's benchmark TAIEX closed slightly higher on October 27, ending a volatile session that saw the index swing over 900 points. While foreign institutions continued their net selling streak, the central bank attributed the Taiwan dollar's sharp depreciation to these significant capital outflows. Meanwhile, TSMC shares rebounded to close at NT$2,400, helping stabilize the broader market despite ongoing volatility in the tech sector.
Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-27
Top developments
TAIEX Swings 900 Points to Edge Higher
On October 27, the TAIEX experienced a turbulent session, opening higher and surging to an intraday high of 46,585.45 before reversing into negative territory with a low of 45,676.67. The index ultimately closed up 54.8 points (0.12%) at 46,096.23, driven by a late-session rebound in TSMC shares. The daily turnover reached NT$976.5 billion, reflecting active trading as investors navigated the post-holiday volatility.
TSMC Rebounds to Close at NT$2,400
TSMC (2330) shares, which had opened below their six-month moving average, recovered to close at NT$2,400, rising NT$15 from the previous close. This rebound was crucial in lifting the broader market into positive territory, as the chipmaker's weighting heavily influences the TAIEX. Other major tech names like MediaTek closed lower, while small and mid-cap stocks showed more resilience.
Central Bank Blames Foreign Outflows for Currency Slide
The Central Bank of the Republic of China stated that net fund outflows by foreign institutional investors are the primary driver behind the Taiwan dollar's sharp depreciation against the U.S. dollar in recent months. The USD/TWD exchange rate closed at NT$32.452 on October 27, falling NT$0.056 from the previous day. This highlights the vulnerability of the local currency to global capital flows.
Foreign Institutions Extend Net Selling Streak
Foreign institutional investors continued to be net sellers of Taiwanese equities, marking their second consecutive day of net selling on October 27. Despite this, the three major institutional investor groups (foreign, local funds, and self-operated dealers) collectively posted a net buy of NT$3.142 billion. This mixed signal suggests local funds are stepping in to absorb some of the foreign selling pressure.
Local view
Local media outlets like Newtalk News highlighted the extreme intraday volatility, noting that the TAIEX's 900-point swing was driven by reactions to Japanese and South Korean market movements. Anue (鉅亨網) focused on the "tail-end" rally, emphasizing that TSMC's late-day recovery was the key factor in saving the index from a loss. Liberty Financial (自由財經) provided historical context, noting that despite recent foreign selling, the market has historically recovered strongly after significant net sell-offs, citing data from CMoney.
Context & numbers
- TAIEX Close: 46,096.23 (+54.80 points, +0.12%)
- Turnover: NT$976.5 billion
- TSMC Close: NT$2,400 (+NT$15)
- USD/TWD Close: NT$32.452 (NT$0.056 lower)
- Foreign Net Flow: Net sellers for the second consecutive day
- Three Major Institutions: Net buy of NT$3.142 billion
On the radar
- TSMC Investor Conference: TSMC's investor conference was scheduled for Thursday, October 29, which could influence short-term sentiment in the semiconductor sector.
- Global Tech Volatility: Investors are closely watching US tech stock movements, as the TAIEX remains heavily correlated with global technology trends.
- Currency Watch: The Taiwan dollar's performance against the USD remains a key focus as foreign capital flows continue to fluctuate.
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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