TAIWAN-ECONOMY-STOCKS
Global tech stocks faced increased selling pressure, with the Taiwan Weighted Index falling 1,156.5 points on October 30, breaching its six-month moving average. The market continues to focus on the returns on AI investments and the profit prospects of companies.

Taiwan stocks fell sharply on Oct. 30 amid concerns over US tech earnings and the returns on AI investment. The Taiex dropped 1,156.5 points to close at 45,211.83, a decline of 2.49%, falling below its six-month moving average. Selling pressure in tech stocks also spread across Asian markets as investors questioned whether major technology companies can generate sufficient revenue and profits from their continued expansion of AI capital spending.

According to a Central News Agency report on Oct. 30, the Taiex fell more than 1,600 points during the session before ending down 1,156.5 points, with turnover of approximately NT$877.73 billion. The index fell below its six-month moving average of 45,314 points but held above the 45,000-point mark.

The report said markets began reassessing whether the massive AI investments by technology giants could be converted into sufficient revenue and profits after Google and Amazon released their earnings. Those concerns weighed on US tech stocks and subsequently affected markets across Asia.

The Financial Supervisory Commission said it had instructed the Taiwan Stock Exchange and Taipei Exchange to closely monitor developments in international financial markets. The FSC said the day's decline in Taiwan stocks remained within the range of market volatility seen in major Asian markets, and reminded investors to assess market conditions rationally using publicly available information.

On the other hand, <chrome_annotation role="link">the fundamentals of Taiwan-listed and OTC companies continued to provide some support. As of the end of September, their cumulative revenue totaled approximately NT$49.89 trillion, up 38.21% from the same period last year. However, the price-to-earnings ratio as of the end of September was about 26.68, indicating that market valuations still need to be assessed alongside corporate earnings performance.

Markets will next focus on earnings from major US technology companies, AI infrastructure investment plans and changes in semiconductor demand. For Taiwan, technology exports and the AI supply chain have driven strong economic growth, but the stock market is also vulnerable to shifts in international investor sentiment when global investors reassess capital spending and profit prospects in the AI industry.