Taiwan stock market jolted by U.S. presidential election results

Shares in Taiwan initially moved higher in the trading session on Wednesday but then turned down sharply to drop below the 9,000-point mark as investors unloaded shares in response to Donald Trump leading in the the U.S. presidential election.

The increasing likelihood of a Trump victory sent global financial markets plunging on Wednesday, with Wall Street futures tumbling as much as 5 percent and Asian stocks sold off sharply, dealers said.

Markets in Tokyo, Hong Kong, Australia and other countries across the region had fallen by as much as 6 percent by early afternoon. The U.S. dollar weakened broadly.

Trump was later declared the 45th President of the U.S. in a stunning victory that sent shockwaves around the world.

The Taiwan Stock Exchange's weighted index opened 35 points higher on Wednesday but quickly tumbled and closed down 274.23 points, or 2.98 percent, at 8,943.2 after moving between 9,296.86 and 8,926.60 on turnover of NT$119 billion (US$3.79 billion).

All major stock categories lost ground and losers outnumbered gainers 813 to 39, with 31 stocks remaining unchanged.

Large-cap stocks came under heavy selling pressure, with shares in Taiwan Semiconductor Manufacturing Co. (???), the world's largest contract chip maker, dropping 3.45 percent to close at NT$182.00, while integrated circuit designer MediaTek Inc. (???) shed 3.29 percent to close at NT$220.50.

Shares in smartphone camera lens supplier Largan Precision Co. (???), the most expensive stock in Taiwan, fell 5.52 percent to close at NT$3,340.00, while Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, lost 3.13 percent to end the day at NT$80.40.

Among old economy stocks, Formosa Plastics Corp. (??) dropped 2.43 percent to close at NT$84.20, while Formosa Chemicals and Fibre Corp. (??) closed 2.80 percent down at NT$93.40 and Formosa Petrochemical Corp. (???) fell 3.24 percent to end at NT$104.50.

In the financial sector, Fubon Financial Holding Co. (???) fell 3.82 percent to finish the day at NT$42.80, while Cathay Financial Holding Co. (???) lost 4.05 percent to close at NT$39.10.

Foreign institutional investors sold a net NT$14.41 billion worth of local shares on Wednesday.

After Trump's victory shocked global markets on Wednesday, U.S. shares are likely to rebound over the next few days, said Kevin Lin (???), vice president of Caizischool Co.

In the local market, Lin said that the main index is likely to hover between 8,500 and 8,600 points in the short term and then return to between 9,000 and 9,200 points as the economy is on the path to recovery.

Source: Focus Taiwan News Channel