--- title: "TAIEX posts third-steepest point drop" type: "News" locale: "en" url: "https://longbridge.com/en/news/290988824.md" description: "Taiwan's TAIEX suffered its third-steepest historical point drop, falling 3.64% to 44,571.76, driven by heavy losses in the electronics sector following US tech stock declines. Investors reacted negatively to Apple and Microsoft's price hikes due to rising memory chip costs, fearing reduced demand. Major Taiwanese chipmakers like MediaTek and Yageo plunged around 10%. The sell-off extended across Asia, with South Korea's KOSPI down nearly 6% and Japan's Nikkei dropping over 4%, reflecting waning AI euphoria and concerns over stretched valuations despite lower-than-expected US inflation data." datetime: "2026-06-26T16:01:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290988824.md) - [en](https://longbridge.com/en/news/290988824.md) - [zh-HK](https://longbridge.com/zh-HK/news/290988824.md) generator: "portal-rs" --- # TAIEX posts third-steepest point drop Shares in Taiwan suffered their third-steepest point fall in history yesterday, dragged down by the bellwether electronics sector after heavy losses among tech stocks on Wall Street overnight. The TAIEX ended down 1,683.50 points, or 3.64 percent, at 44,571.76, with selling across the board. Yesterday’s point loss follows falls of 2,065.87 points on April 7 last year and 1,807.21 points on Aug. 5, 2024, Taiwan Stock Exchange data showed. “Investors punished US tech stocks after Apple Inc and Microsoft Corp raised the prices of some of their products due to a spike in memory chip and storage device prices, fearing the price hikes would hurt end-user demand,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. The companies’ announcements dampened sentiment that had been boosted the previous day by forecast-busting results from US chip giant Micron Technology Inc. The electronics index fell 3.91 percent, with contract chipmakers Taiwan Semiconductor Manufacturing Co (台積電) losing 2.09 percent and United Microelectronics Corp (聯電) down 8.12 percent, while chip designers MediaTek Inc (聯發科) plunged 10 percent and Aichip Technologies Inc (世芯) shed 8.51 percent. Power management solution provider Delta Electronics Inc (台達電) shed 8.59 percent and Yageo Corp (國巨), the world’s third largest multi-layer ceramic capacitor maker, dipped 10 percent. “With electronics component prices on the rise, major cloud service providers’ investments could be affected, which would also hurt Taiwan’s suppliers,” Huang said. Elsewhere in Asia, Seoul’s KOSPI dived around 9 percent in afternoon trade, before finishing almost six percent off. Chip giants and market heavyweight SK Hynix Inc shed more than eight percent and Samsung Electronics Co lost 5.3 percent. The rout sparked a 20-minute trading halt of KOSPI-listed shares. Tokyo, also heavy with tech firms, shed more than 4 percent. Tech investment giant Softbank Group Corp plunged more than 12 percent as the New York Times reported that ChatGPT-maker OpenAI is considering holding off an initial public offering until next year. There were also steep losses in Hong Kong, Shanghai, Singapore, Jakarta, Manila and Bangkok. The tech sector has been the main driver of a surge to record highs across several markets globally amid an eye-watering boom in all things artificial intelligence. However, that euphoria appears to be waning on worries that company valuations look stretched, amid questions about when firms will see a return on the trillions of dollars that has been invested. “Investors are taking their time and picking winners in the AI trade, while discarding others,” XTB Group research director Kathleen Brooks said. The losses came even as investors pared expectations for US interest rate hikes after data showed the Federal Reserve’s favored gauge of inflation came in slightly lower than expected last month. 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