Taiwan's stock benchmark is on the verge of entering a technical correction as the global selloff in artificial intelligence stocks deepens. The Taiex Index fell as much as 3.5% on Friday, reaching its lowest level since Aug. 25.
The gauge has dropped more than 10% from its record high hit on Oct. 6. Investors are worried about higher borrowing costs, massive AI spending and some weaker-than-expected earnings. The selloff shows just how deep the angst around the AI trade has become.
Taiwan, with its broader technology supply chain, is seen by many investors as a higher-quality way to play the theme than South Korea. Even that distinction hasn't spared the Taiex from nearing a correction.
Another round of disappointing earnings in the US overnight accelerated the rotation out of AI stocks and into havens such as Treasuries.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing