Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-26
Taiwan's stock market faced significant volatility this week, driven by a record-breaking streak of foreign selling and a sharp decline in the Taiwan dollar, which breached the NT$32 mark against the USD for the first time. While TSMC reported record profits, investor caution regarding AI valuation led to stock declines, causing the TAIEX to fall nearly 1,000 points in a single session before a partial rebound.
Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-26
Headline: Taiwan Stocks Tumble as Foreign Investors Sell Record Amounts and Dollar Weakens
<!-- /headline -->Top developments
Foreign selling hits record levels
Foreign investors sold more than NT$100 billion worth of Taiwanese stocks, marking a significant escalation in selling pressure driven by international AI market concerns. This intense outflow contributed to a market-wide decline, with the TAIEX dropping nearly 961 points in one session as technology stocks tracked overnight sell-offs in the US.
TSMC profit record fails to lift stock
Despite posting record profits, Taiwan Semiconductor Manufacturing Co. (TSMC) shares fell as investors grew cautious about valuation and AI demand sustainability. The drop in TSMC, a key weighting in the TAIEX, dragged the broader index lower, limiting gains even when other sectors showed resilience.
New Taiwan dollar breaches NT$32
The New Taiwan dollar fell sharply against the US dollar, closing above the NT$32 mark for the first time. This currency weakness coincided with the stock market sell-off, reflecting broader capital outflows and shifting sentiment among foreign investors.
Market rebound on Oct 21
On October 21, the TAIEX rebounded by 594.84 points to close at 46,887.77, led by TSMC. This recovery came as foreign investors halted a 10-day streak of net selling, though institutional investors still recorded a net sell of NT$568 million.
Local view
Local financial media, such as the United Daily News (UDN), reported that the market's "ATM" status for foreign investors continued with an 8-day streak of net selling prior to the October 21 rebound. On October 21, foreign investors bought back into the market, ending the streak, while domestic institutions and self-managers continued to sell, resulting in a small overall net sell by the three major institutional categories. Analysts noted that TSMC's technical indicators, such as KD and RSI, showed signs of oversold conditions, potentially supporting a short-term rebound if it could reclaim key moving averages.
Context & numbers
- TAIEX Close (Oct 21): 46,887.77 points, up 594.84 points (+1.28%)
- Foreign Selling (Oct 13): Exceeded NT$100 billion in a single day
- Foreign Selling (Oct 16): Net sell of NT$46.147 billion, marking the 8th consecutive day of selling
- Foreign Selling (Oct 19): Net sell of NT$76.742 billion, marking the 9th consecutive day of selling; TSMC saw 22,000 shares sold off
- Exchange Rate: The New Taiwan dollar closed above NT$32 against the USD for the first time
- Foreign Reserves: As of the end of September 2026, Taiwan's foreign exchange reserves stood at US$600.75 billion, a decrease of US$1.15 billion from the previous month
On the radar
- Market Closure: The Taiwan market was shut for four days (including the National Day holiday period adjustments), with Tuesday's reopening requiring the market to settle four days of price gaps at once.
- Typhoon Impact: The Taiwan Futures Exchange (TAIFEX) was closed on October 23, 2026, due to Typhoon Champi, affecting trading and settlement schedules for options and futures.
- Fund Manager Exodus: Reports indicate that some professional fund managers and analysts in Taiwan are quitting their jobs to invest their own money, reflecting high confidence in the market's long-term potential despite short-term volatility.
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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