Taiwan index tumbles 3.41%, posts sixth-largest daily point loss
Key Facts
Taiwan's benchmark Taiex index closed down 3.41% in the October 15, 2026 session as technology shares came under pressure that traders linked to fears of U.S. interest rate hikes, according to Taiwan's Central News Agency. The index settled at 46,969.87 points, recording a daily loss of 1,655.96 points. The agency ranked the decline as the sixth-largest daily point loss in the index's history. Traders' interest rate concerns followed a U.S. inflation reading that exceeded market expectations, according to the agency's report on the session. The decline followed a 1.84% drop at the close on Tuesday, October 13, according to Investing.com, before the steeper loss recorded in Thursday's session.
The decline was accompanied by a rise in turnover to NT$1.32 trillion, according to closing figures published by Taiwan's Central News Agency. Turnover in the previous session, on October 14, had reached NT$978.14 billion, according to the comparison in the agency's report. Foreign institutions recorded net sales of NT$302.56 billion on the main market, according to exchange data cited by the agency. The electronics sector index fell 3.84% during the same session, outpacing the decline in Taiwan's broader market index. Taiwan Semiconductor Manufacturing Co. accounts for more than 40% of total market capitalisation, according to the report, in a market where the company carries substantial weight among traded stocks.
Against the backdrop of interest rate concerns, U.S. consumer prices rose 3.7% year-on-year in September, before seasonal adjustment, according to the U.S. Bureau of Labor Statistics. The reading exceeded the market forecast of 3.6% cited by Taiwan's Central News Agency in its report on the drivers of selling pressure. It also surpassed August's annual inflation rate of 3.4%, according to Bureau of Labor Statistics data. On a monthly basis, the U.S. consumer price index rose a seasonally adjusted 0.6% in September, with the gasoline index climbing 9.1%. Gasoline accounted for more than half of the monthly increase in overall prices, while consumer prices excluding food and energy rose 2.6% year-on-year, according to the U.S. release.
Shares of Taiwan Semiconductor Manufacturing Co., the market's largest constituent by weight, fell 2.01% during the selloff, according to Taiwan's Central News Agency. The stock closed at NT$2,440.00 as the company announced its results for the third quarter of 2026. In its announcement issued on the day of the session, the company said revenue for the quarter rose 50.9% from the same period a year earlier. It also reported a 68.7% year-on-year increase in net profit, with the results coinciding with the decline in its shares. Diluted earnings per share also grew 68.7% year-on-year, matching the reported increase in net profit during the third quarter.
During the earnings conference on the day of the session, company Chairman and Chief Executive C.C. Wei said demand continued to exceed the company's current supply capacity, according to the Associated Press. Wei said: "Demand, in fact, is still far above our current ability to supply." His remarks coincided with the company's announcement of its revenue outlook for the fourth quarter of 2026, alongside third-quarter results published the same day. The company set the lower end of its revenue forecast at US$52.3 billion, according to its earnings release. It set the upper end at US$54.3 billion for the same period, in a quarterly forecast range announced amid trading pressure on Taiwanese technology shares.
On the upcoming U.S. monetary policy calendar, the Federal Reserve holds its next meeting in October, according to the schedule published on the central bank's website. The Federal Open Market Committee meets on October 27 and 28, a two-day meeting according to the Fed's calendar. The meeting follows the September reading that traders in Taiwan linked to fears of U.S. interest rate hikes during the stock market selloff. After that, the U.S. Bureau of Labor Statistics is scheduled to publish the next consumer price reading on November 10, 2026, according to the release date in its statement. That reading will cover October prices, following September data that showed annual inflation accelerating from August and exceeding market expectations.