On October 15, Taiwan’s stock and currency markets faced intense simultaneous pressure as foreign investors dumped a record NT$302.555 billion (about US$9.4 billion) in equities during a single session. The Taiwan dollar slipped up to NT$0.379 versus the U.S. dollar before closing at NT$32.265. Trading volume across Taipei Forex Inc. and the Yuan Tai Forex Market climbed to $9.115 billion (roughly NT$290 billion), establishing a new all‑time single‑day record.
The publication of U.S. inflation data exceeded expectations, lifting global interest rates and tightening risk appetite. This dynamic compounded heavy exits in semiconductor equities, dragging broader Asian indices lower. The Taiwan Weighted Index fell 3.41% — 1,655.96 points — to 46,969.87, posting a decline below the 47,000‑point mark. Foreign investors reduced equity exposure, pressuring the Taiwan dollar and reviving a synchronized equity‑and‑currency sell‑off.
Foreign Selling Tops NT$300 Billion, Shattering Taiwan Market Records
Foreign investors propelled the single‑day sell‑off past the NT$300 billion threshold for the first time. Taiwan Stock Exchange data reveal that the three biggest institutional groups collectively off‑loaded NT$370.076 billion (about US$11.5 billion) on the date. Among them, foreign investors and Mainland Chinese capital together generated NT$302.555 billion (US$11.5 billion) of net reductions, proprietary traders trimmed NT$95.824 billion (US$3.0 billion), while investment trusts posted netted purchases of NT$28.303 billion (US$0.88 million). This NT$302.555 billion exit marked the largest ever single‑day foreign outflow in Taiwan’s history, overtaking the previous record of NT$188.315 billion set on July 17 by more than NT$114.2 billion (US$3.5 billion) and moving the October 13 event to fourth place after the July and June peaks.
Taiwan Semiconductor Manufacturing (2330.TW) Closes Down NT$50, Heavyweights As Target of External Exits
Taiwan Semiconductor Manufacturing Co., Ltd. (2330.TW) slid by NT$50 per share, with semiconductor and other large‑cap names bearing the majority of foreign investor liquidations. Sources indicate that offsetting orders totaled NT$677.36 billion (approximately US$21.0 billion), far outpacing buyer pressure of NT$374.805 billion (US$11.6 billion). The stark imbalance signals that the sudden reduction in holdings reflects both profit collection and a broader reconfiguration of portfolios.
Currency Market Surges as Central Bank and Exporters Jointly Stabilize the Taiwan Dollar
The dollar opened at NT$32.11 and slipped progressively, reaching an intraday low of NT$32.452 before closing at NT$32.265—the weakest level observed in more than two months. Facing relentless selling, exporters lifted U.S. dollar activity to bolster short‑term liquidity, and the Central Bank conducted coordinated interventions, culminating in modest adjustments near term‑close. Ultimately, the dollar’s retreat compressed to NT$0.192, resulting in a closing price of NT$32.265.
Currency market trading activity surged in tandem. Taipei Forex Inc. logged a single‑day turnover of $7.03 billion (roughly NT$230 billion), and the combined Yuan Tai Forex Market total hit $9.115 billion, breaking the previous all‑time single‑day peak set three days earlier. The record had previously been established on October 13, now overtaken just two calendar days later, underscoring the sheer pace of capital rotation.
After Record Volume, Market Focus Shifts to Sustainability
Analysts argue that while the Taiwan Central Bank has indicated readiness to intervene—holding reserves around US$600 billion (≈NT$19.4 trillion)—it has already executed net U.S. dollar sales of NT$17 billion early in the year, signalling proactive stabilization efforts. The heightened costs and uncertainties linked to these moves have intensified. Regulators are weighing whether the selling will persist, especially if it is fueled by passive ETFs and algorithmic strategies that could extend short‑run volatility, or if it reflects fundamental profit‑taking at markedly elevated levels where a swift normalization may follow. Moreover, any concentration in high‑levy, liquid instruments such as actively managed ETFs and sectors like displays and memory chips could reinforce the squeeze on both equities and the dollar.
If foreign investors continue repatriating capital, the Taiwan dollar could approach the NT$32.3–NT$32.5 corridor. Traders warn that a secondary deterioration would jeopardize the NT$32.5 support, prompting a possible breach below that level. The prevailing environment continues to be defined by persistent foreign outflows and shifting global interest‑rate dynamics. Although the Central Bank retains substantial buffer capacity, ongoing deployments of reserve assets and evolving monetary stances in Washington leave market participants vigilant about the durability of the current selling momentum.