Taiex Falls 4.51% After TSMC Shares Hit Daily 10% Decline Limit

Key Facts

The Taiex fell 1,873.08 points, or 4.51%, to close at 39,701.64 points on November 6, 2026, after touching 37,837.05 points during the session, according to Taiwan’s Central News Agency. In the opening minutes, the index dropped 3,737.67 points in a record decline that broke below the 40,000 level and its 240-day moving average near 38,827 points. The losses followed sharp declines on Wall Street and in Japan and South Korea, amid concerns about artificial intelligence data center policies after the U.S. midterm elections. Taiwan Semiconductor Manufacturing Co. shares, TSMC, hit the daily 10% decline limit at NT$2,020 after trading began. The stock later rebounded, and its recovery helped the Taiex trim its losses by about 920 points, according to CNA.

The stock’s move reflected the intensity of selling at the open, before its course turned as trading recovered during the session. The Taiex closed with a smaller loss than its low of 37,837.05 points, after trading between that level and 40,435.83 points, according to CNA data. The stock hit its lowest level at the daily limit before its rebound eased the impact on the broader index. The early drop had pushed the Taiex below the psychologically important 40,000 level, as well as its 240-day moving average at about 38,827 points. The gap between the low and the close showed that selling did not continue at the same intensity throughout the session.

CNA linked losses in Taiwan’s market to the sharp decline on Wall Street and drops in Japanese and South Korean stocks, as well as uncertainty about artificial intelligence data center policies after the U.S. elections. The index’s breach of key levels intensified the move early in trading, with a record decline of 3,737.67 points within minutes of the open. Analysts warned of a possible wave of selling to meet margin calls, as investors who bought shares with borrowed money may be forced to sell their holdings. They advised those investors to wait for technical signs that the market had stabilized, the agency reported. On the same day, Taiwan’s National Financial Stabilization Fund was authorized to intervene in the market, the tenth time since its establishment in 2000; the fund was set up with capital of NT$500 billion.

The sharp market decline coincided with strong growth indicators at TSMC. In the first ten months of 2026, the company’s consolidated sales rose 43.3% year over year to NT$4.49 trillion, according to data published by CNA. The chief executive had said at the third-quarter results conference that the company expected revenue to grow about 44% during 2026 in U.S. dollar terms, with demand for its advanced technologies remaining strong. Third-quarter revenue was $46.7 billion, up 16.2% from the previous quarter and above the upper end of the company’s guidance, according to the results conference. The company said demand for artificial intelligence remained far above its current supply capacity. These figures provided a different backdrop to market concerns about a possible slowdown in data center investment.

On November 9, an analyst said the government’s pledge to intervene had improved investor sentiment and encouraged buying on weakness. The fund’s decision marked the tenth time it had been authorized to intervene since its establishment in 2000, according to CNA. TSMC announced its October monthly sales on November 10, while its investor relations calendar showed that November sales were scheduled for release on December 10, 2026. The prospect of selling to meet margin calls and signs of market stabilization remain among the factors analysts urged investors to monitor. The release date for November data is the next item on the company’s published calendar.