Taiwan’s benchmark Taiex climbed almost 5% in Monday trading, CNBC reported, rebounding after authorities moved to halt a sell-off that pushed the market into bear territory last week. CNBC said the gains were powered by a rebound in key stocks Taiwan Semiconductor Manufacturing and Hon Hai Precision Industry.
The index closed Friday at 39,701.64, down 1,873.08 points, or 4.51%, capping a week in which it lost 5,510.19 points, or 12.19%. It fell as much as 9% during Friday’s session before paring its losses.
After Friday’s close, the National Stabilization Fund’s emergency committee authorized a market-support operation, opening the way for the NT$500 billion fund to buy stocks. Taiwan’s Financial Supervisory Commission also tightened short-selling rules effective Monday, including higher margin requirements.
The rebound followed a recovery in U.S. chip stocks on Friday. Monday’s figures reflect trading in progress, and the Taiex’s closing level was not yet available at publication.
