Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-31
The Taiwan Weighted Index (TAIEX) experienced extreme volatility this week, swinging from a 900-point surge to a 1,100-point plunge amid global AI market turbulence. Foreign investors ended a selling streak with a record-breaking single-day sell-off, while the Taiwan dollar weakened significantly as central bank Governor Yang Chin-long attributed currency drops to foreign profit-taking and repatriation.
Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-31
Top developments
AI Concerns Trigger 1,100-Point Plunge
On October 30, the TAIEX fell nearly 2.5%, losing over 1,100 points to close at 45,211.83, driven by heavy losses in AI-related stocks. The sell-off followed disappointing earnings from Alphabet and negative after-hours movements in US tech giants like Amazon and Intel, sparking fears that massive AI capital expenditures will not yield immediate returns. TSMC, a major index weight, fell below NT$2,400 intraday, hitting its lowest level in two months.
Foreign Investors Execute Record Sell-Off
Foreign institutions reversed their previous buying momentum on October 30, executing a net sell of NT$112.4 billion, the seventh-largest single-day outflow in history. This massive exit contrasts sharply with the previous day (October 28), when foreign investors bought NT$15.92 billion, helping push the TAIEX up 939 points to reclaim the 47,000 level. The rapid shift highlights the volatility of foreign capital flows in Taiwan's tech-heavy market.
TSMC Price Hike Speculation Boosts Shares
Earlier in the week (October 28), TSMC shares rose 3% after reports from Commercial Times indicated the company plans to increase prices for its CoWoS AI chip packaging by up to 20%. This potential price hike for customers like Nvidia and AMD reflects the sustained demand for TSMC’s advanced packaging capabilities, which had temporarily lifted the broader index to 47,035.58 points.
Central Bank Explains Currency Drop
Central Bank Governor Yang Chin-long told lawmakers on October 29 that the New Taiwan dollar’s 3% decline this year is largely due to foreign investors cashing in on tech stock rallies and repatriating funds to the US. Despite record exports, the currency weakened to break below NT$32.6 against the dollar on October 30, reflecting the intense pressure from capital outflows.
Local view
Local financial media highlighted the dramatic swing in investor sentiment. Cmoney noted that while foreign investors bought top stocks like MediaTek and Nan Ya Plastics on October 28, they simultaneously reduced holdings in TSMC and MediaTek for the 14th consecutive day. Money Weekly emphasized the "seesaw" nature of the trading, where the index reclaimed the 47,000 mark only to lose it days later due to global AI fears.
Context & numbers
- TAIEX Close (Oct 30): 45,211.83 points (down 1,156.5 points or 2.49%).
- TAIEX Close (Oct 28): 47,035.58 points (up 939.35 points or 2.04%).
- Foreign Net Flow (Oct 30): Net sell of NT$112.4 billion.
- Foreign Net Flow (Oct 28): Net buy of NT$15.92 billion.
- TSMC Price (Oct 30): Fell below NT$2,400 intraday.
On the radar
- Continued AI Volatility: Market analysts are watching for further reactions to US tech earnings and AI spending announcements, which directly impact TAIEX sentiment.
- Currency Intervention: The Central Bank stated it would step in if the Taiwan dollar remains volatile, following the sharp decline against the USD.
- Foreign Positioning: Investors are monitoring if the massive sell-off on October 30 is a one-time profit-taking event or the start of a broader correction trend in Taiwan's tech sector.
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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