What the government did
On Friday, the Ministry of Finance said it has cleared the National Financial Stabilization Fund to intervene in the market following the latest rout. The fund's committee granted its executive secretary the authority to release capital when necessary to help stabilize prices.
Why stocks fell
Taiwan's benchmark slipped into bear territory as Asia-wide declines met a deeper shakeout in AI names. The US midterm elections added a new spark to the pullback in AI bets, compounding doubts about whether the hefty spending on the technology will pay off. On top of that, expectations of tighter rules under a Democratic-controlled Congress are weighing on the growth outlook for chipmakers and data center suppliers.
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The ministry's view and what it means for your portfolio
Officials pointed to fragile short-term investor sentiment and persistent instability across global politics and the economy, while stressing that Taiwan's economic fundamentals remain sound. The bottom line: policy support is now on the table even as questions around AI demand and regulation continue to ripple through semis and infrastructure plays.
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