Taiwan stock index and Taiwan Semiconductor record the largest decline, analysis suggests that short-term selling pressure may cause more market volatility

Taiwan's weighted index followed the decline of US and Asian stocks, falling by nearly 8.4% on Monday; its heavyweight stock Taiwan Semiconductor dropped by nearly 9.8%, setting a record for the largest decline in both the index and the stock. Analysis points out that in the short term, attention should be paid to changes in chip holdings in Taiwan's stock market. A sharp drop in the index will force retail investors to liquidate leveraged positions, leading to more market volatility. However, as these short-term selling pressures gradually ease, it will help stabilize the market