Taiwan has authorized its National Financial Stabilization Fund to intervene in the stock market following a sharp selloff that pushed the benchmark index into a bear market. The fund's committee authorized its executive secretary to deploy resources as needed, according to a Ministry of Finance statement. The intervention comes as broader Asian markets face a tech-led rout driven by an artificial intelligence selloff and concerns over the profitability of massive tech investments.
The US midterm elections have added pressure to the unwinding of the AI trade, raising doubts about future growth for chipmakers and data-center suppliers. The Ministry of Finance cited weak investor confidence and ongoing global economic uncertainty, while affirming that Taiwan's economic fundamentals remain sound. The stabilization fund aims to restore short-term investor confidence amid continued market volatility.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing