TSMC's Last-Minute Rally Fails to Offset Heavy Selling by Major Institutions as Taiwan Stocks Face $4.29B Net Sell-Off; Global Markets Tumble, Taiwan Futures Night Session Struggles

Taiwan's stock market saw intense volatility today (8th), ending up 255.30 points (0.56%) at 45,734.41, supported by TSMC's late-session rally. Trading value dropped to NT$958.35 billion. However, the Taiwan stock index futures night session opened and closed lower, down about 200 points at press time, pressured by global index futures declines. Post-market data showed foreign institutional investors, domestic dealers, and investment trusts collectively sold a net NT$42.93 billion (approx. $1.34 billion USD). Foreign investors led the sell-off with NT$37.95 billion, proprietary traders sold NT$16.94 billion, while investment trusts bought NT$11.96 billion. South Korea's KOSPI, once the world's best-performing market this year, fell sharply by 409.53 points (5.35%), briefly triggering a 'circuit breaker,' and is now down nearly 20% from its June peak, nearing technical bear market status. The downturn stems from rising geopolitical risks and investor reassessment of AI-driven semiconductor demand. The market's heavy reliance on chipmakers Samsung and SK Hynix makes it vulnerable to semiconductor cycle shifts. Leverage ETFs have amplified volatility. South Korea's Finance Minister Koo Yun-cheol held an emergency meeting with central bank and financial regulators, vowing to monitor risks and prevent失控 market swings. The Financial Services Commission (FSS) will scrutinize the surge in single-stock leveraged ETFs, while the central bank warns such products intensify one-sided trading and concentration risks, potentially triggering liquidity crises. Fidelity International portfolio manager Ian Samson noted that while AI is driving real semiconductor demand, it's fueled by $1 trillion in capex from a few tech giants. If this spending proves unsustainable, markets face downside risks. On the geopolitical front, Iran's Foreign Ministry condemned the U.S. for violating a preliminary ceasefire agreement, accusing it of military attacks on southern Iranian monitoring centers, revoking oil sale licenses, and enabling Israeli aggression against Lebanon, all of which undermine the ceasefire. Iran stated the U.S. bears full responsibility for escalating tensions and warned that any country aiding aggression against Iran would be complicit. Iran's armed forces, it affirmed, will continue to defend national sovereignty and security. Related headlines: Gold enters bear market from all-time highs—will the sell-off continue? Four capital flow trends reveal key market signals. Don't be blinded by the AI frenzy—stock markets face a 'double bubble' risk, with illusory profits potentially becoming a time bomb. 'Memory shortage' triggers supply chain crisis—semiconductor industry warns Trump administration that market intervention could worsen shortages.