Business · Markets · 8 hrs ago
Taiwan Stocks Rebound 5%, but Foreign Investor Selling Continues
Taiwan's stock market rebounded 5% on Nov.
9 after the government introduced measures to steady trading.
The recovery followed a sharp fall: the main index had dropped 21% from its peak by Nov.
6, after seven straight sessions of losses.
The sell-off followed concerns about slower AI investment and policy uncertainty, while foreign investors pulled money from Taiwanese shares.
Foreign investors sold a record $31.78 billion in October, even as exports and company results remained strong.
Taiwan's financial regulator tightened rules on short selling and borrowing shares, and a state fund began its 10th market intervention.
Past interventions helped stabilize stocks six times out of nine, but foreign investors were still net sellers on Nov.
9.
Analysts say a sustained recovery depends on foreign investors returning, along with a steadier Taiwan dollar and developments in major US AI stocks.
Taiwan stocks rebounded 5% on Nov. 9 after the government introduced market-stabilisation measures.
Foreign investors continued to sell shares that day, raising doubts about whether the rebound can last.
Hana Securities said a sustained recovery would require foreign funds to return and the Taiwan dollar and investor flows to stabilise.
The Taiex had fallen 21% from its peak by Nov. 6 after seven consecutive trading-day declines.
Taiwan’s October exports rose for a 36th consecutive month, while its trade surplus reached a record.
- Who
- Taiwan’s stock market, the government and foreign investors. Hana Securities analysts assessed the outlook.
- What
- The Taiex rebounded 5%, but foreign investors continued net selling.
- When
- The rebound took place on Nov. 9; the report was published on Nov. 10, 2026.
- Where
- Taiwan.
- Why
- The government introduced market-stabilisation measures after a sharp market fall. The sources say the decline was driven by investor flows and sentiment, including worries about slowing AI investment and policy uncertainty.
This story does not have two clearly opposing sides.
The Taiex reached a record high and tried to break into the 49,000-point range after strong TSMC results.
Concerns about slower AI investment and policy uncertainty grew, and the market turned sharply lower.
The Taiex had fallen 21% from its peak after seven consecutive trading-day declines.
Taiwan’s financial authorities began five market-stabilisation measures, and the stock market rebounded 5% while foreign investors continued net selling.
- Rebound
- 5% on Nov. 9
- Peak-to-trough decline
- 21% by Nov. 6
- Foreign net selling
- $31.78 billion in October, a monthly record
- Sector concentration
- Semiconductors and hardware account for about 75% of the Taiex
- TSMC weighting
- About 43% of the Taiwan market
- Short-sale limit
- Cut from 30% to 3% of average trading volume over the previous 30 business days
What people are saying
For a trend reversal, the return of foreign capital is necessary.
Until foreign investor flows stabilise, it is difficult to be optimistic about the durability of the rebound.