Taiwan Stock Market Pre-market News: SOX Index Plunges Over 4%, Q2 Recovery Faces Challenges as Super Earnings Week Begins

July 24 Taiwan Stock Market Pre-market News

1. Taiwan's Taipei Stock Exchange dropped 1,195.97 points (2.67%) on Friday (July 24), closing at 43,654.84, falling below the 20-day moving average again, with trading value shrinking to NT$792.435 billion. The three major institutional investors collectively sold short NT$66.394 billion. The Taiwan Weighted Index futures night session fell 445 points to 43,369, and TSMC's ADR (TSM-US) declined 2.93%, increasing pressure on Monday's market rebound.

2. U.S. tech stocks weakened on Friday, with the Philadelphia Semiconductor Index (SOX) plunging 4.25%. This week, investors will closely watch earnings reports from tech giants including SK Hynix (SKHY-US), Microsoft (MSFT-US), Meta (META-US), Apple (AAPL-US), and Amazon (AMZN-US), as well as the FOMC interest rate decision.

3. Three major oil producers—Taisun (1218-TW), Fushou (1219-TW), and Formosa Oils (1225-TW)—held a material information briefing on July 24 after their soybean oil products were found to contain excessive benzopyrene. Taisun estimated its losses from product recalls, fines, and compensation at NT$150–200 million, while Fushou estimated losses between NT$100–150 million. Formosa Oils Chairman Wu Hsing-cheng stated that the company is broadly accepting customer returns, making current losses difficult to quantify.

4. Passive component giant Yageo (2327-TW) will hold its earnings call on Wednesday (July 29). Amid recent sharp corrections in the sector, Yageo's stock has nearly halved from its peak. Market focus will include Q2 earnings, business outlook, AI demand, product lead times, price increases, and capacity utilization.

5. Petrochemical firm Taiyen (1310-TW) issued a material announcement at 7 p.m. on July 24. Due to severe overcapacity leading to falling product prices and rising costs, Taiyen has incurred losses for four consecutive years. To improve operations, the company announced it will cease operations at its styrene plant in Lin Yuan, Kaohsiung, starting October 1, 2026, and will implement employee placement and optimization measures in advance per labor laws.

6. The U.S. Trade Representative (USTR) announced final actions under the Section 301 investigation on forced labor, granting Taiwan and the EU the lowest preferential tariff rate of 10% without叠加 of Most Favored Nation (MFN) tariffs—better than Japan and South Korea's 12.5%. A total of 2,231 products are exempted from 301 tariffs. Taiwan's Executive Yuan stated the exemptions include 118 Taiwan-specific items such as butterfly orchids and pineapple cakes, preserving price competitiveness in agricultural and industrial exports and capturing supply chain shift opportunities. The list explicitly excludes all goods subject to Section 232 tariffs, with ICT and drone products also exempted.

Foreign investors sold NT$60.9 billion worth of plastics group stocks, while the three major institutional investors increased holdings in Wistron by 150,000 lots over three days.

Taiwan's stock market recorded the 9th largest point drop in history (1,195 points), losing the 20-day line, though it ended the week up 983 points.

Taisun estimates its direct losses from benzopyrene-related recalls and fines at NT$150–200 million; Fushou estimates NT$100–150 million.

Largan Precision made its third land acquisition in Taichung Industrial Park within a month, spending NT$1.38 billion to purchase 3,065 ping of land.

The Shanghai Containerized Freight Index (SCFI) fell for the third consecutive week, though the decline narrowed. Persian Gulf route freight rates rose over 7%.

The U.S. placed Taiwan's currency under 'probation'; the Central Bank responded with three measures.

Concerns over inflation and rate hikes led to a dual sell-off in stocks and currency, with the New Taiwan dollar closing at NT$32.358, down 9.2 cents.

Taiwan Institute of Economic Research (TIER) revised its 2025 GDP growth forecast upward to 10.38%, with both domestic and external demand upgraded.

The 2,231-item 301 tariff exemption list was revealed, protecting 118 'Taiwan-exclusive' items including butterfly orchids and pineapple cakes.

Yageo's July 29 earnings call is highly anticipated, with market focus on five key areas.

Taiyen, facing four consecutive years of losses, announced the shutdown of its styrene plant starting October 1, 2026, to improve performance.

Section 301 tariffs take effect: Taiwan receives 10% preferential rate. The Executive Yuan confirmed the exemption list includes critical raw materials and components.