Taiwan Stocks Slide Into Correction: Taiex Down 13% From Its Record

Taiwan's benchmark Taiex index slid more than 3% on Tuesday, November 3, 2026, extending its losses to 13.1% from a record high in early October and putting the market on track to confirm a technical correction. Reuters put the fall at 3.3% in Asian trading, while the Associated Press later reported a 3.8% slide, as investors sold the world's most chip-heavy stock market over fresh doubts about artificial-intelligence spending.

What happened?

Taiwanese shares were among Asia's biggest fallers on Tuesday. The Taiex had already closed 0.65% lower on Monday at 44,920.14, according to Focus Taiwan, and Tuesday's drop pushed the index to its lowest levels in around three months alongside South Korea's Kospi, the Associated Press reported.

The selling was led by the chip names that dominate the index. Taiwan Semiconductor Manufacturing Corp. (TSMC), which accounts for more than 40% of the Taiex's total market value, sank 1.9%, while chip designer MediaTek plunged 7.6%, according to the AP. When a single company carries that much weight, a bad day for TSMC is a bad day for the whole Taiwanese market.

The fall was regional, not just local. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.4% to its lowest level since October 23, Reuters reported. South Korean shares fell as much as 4.1%, with memory maker SK Hynix down 5.7% and Samsung Electronics down 4%, giving up Monday's gains. Shares in China fell 1.4%, and Japanese markets were closed for a holiday.

Why is it blowing up?

The direct answer: investors are questioning whether hundreds of billions of dollars of AI data-centre spending will pay off. Reuters said Asian tech stocks came under fresh pressure as investors fretted over AI spending and earnings. The AP noted that AI stocks have been shaky for months amid criticism that they surged too high, and that the latest results from Alphabet underlined the concern: Google's parent burned through more cash, as measured by free cash flow, and reported slower-than-expected growth in its search business.

Foreign money has been leaving Taiwan for weeks. Foreign investors sold a record NT$994.3 billion (about $30.6 billion) of Taiwan stocks in October, according to Focus Taiwan and the Economic Daily News, with TSMC accounting for nearly 39% of that net selling. Bank of America analysts made the same point in a note quoted by Reuters: "Within Asia, Korea and Taiwan equity outflows continue to dominate, given rising concerns around sustainability of the tech cycle."

Politics added a second layer of caution. Voting in the U.S. midterm elections begins on Tuesday, and traders were reluctant to add risk before the results. ING analysts, quoted by Reuters, called Tuesday "nothing more than the day ahead of a much bigger day," noting that by Wednesday markets will have guidance on the midterm implications and the U.S. Treasury's quarterly refunding announcement.

How far has Taiwan fallen?

13.1% from its record high. That is the figure Reuters reported for the benchmark's losses from its early-October peak after Tuesday's slide. A fall of 10% or more from a recent high is commonly called a correction. The Taiex closed October down 5.7% for the month at 45,211.83, which had already left it 9.3% below its October 6 record close of 49,822.55 — Tuesday's selling pushed it decisively past the 10% line.

The mood spread beyond Asia. S&P 500 e-mini futures edged lower for a fourth consecutive day, off 0.1%, while European futures fell 0.9%, German DAX futures slid 0.8% and FTSE futures were 0.2% lower, Reuters reported. Oil steadied after Monday's tumble, with Brent crude up 0.5% at $105.30 in Asian trading as investors weighed U.S.–Iran peace talks.

What's next?

Three things will decide whether this is a correction or something deeper. First, U.S. midterm results on Wednesday and what they mean for technology and trade policy. Second, earnings from U.S. chip and AI names this week, starting with AMD on Tuesday, which will test whether AI spending guidance still reassures investors. Third, whether foreign selling in Taipei slows: October's record outflows were the fuel for this slide, and a market where one stock is more than 40% of the index will keep moving with TSMC until that flow turns.

Sources

Reuters — Asian stocks retreat ahead of US midterms · Reuters Morning Bid · Associated Press — Asian trading as tech sell-off deepens · Focus Taiwan / Economic Daily News — record foreign selling in October · Focus Taiwan — Taiex Monday close

FAQ

Why did Taiwan stocks fall on November 3, 2026?

The Taiex fell more than 3% as investors sold chip-heavy Asian markets over doubts about AI spending returns, following record foreign selling in October and caution ahead of the U.S. midterm elections.

Is Taiwan's stock market in a correction?

It is on track to confirm one: Reuters reported the benchmark has fallen 13.1% from its early-October record high, beyond the 10% drop that commonly defines a correction.

How much did TSMC and MediaTek fall?

TSMC sank 1.9% and MediaTek plunged 7.6% on Tuesday, according to the Associated Press. TSMC alone makes up more than 40% of the Taiex's market value, so its moves drive the index.

How much did foreign investors sell in Taiwan in October?

A record NT$994.3 billion, about $30.6 billion, according to Focus Taiwan and the Economic Daily News — with TSMC accounting for nearly 39% of the net selling.