Taiwan Stocks Drop More Than 1,400 Points as Taiwan Dollar Hits 32.9

Taiwan’s benchmark stock index fell more than 1,400 points as U.S. midterm vote counts heightened concern about resistance to President Trump’s agenda, while the Taiwan dollar weakened to 32.9 per U.S. dollar.

The Taiwan Weighted Index slid 3.25%, extending the decline into a second straight trading session. Foreign investors sold major electronics and semiconductor shares as concern grew about possible political gridlock in Washington.

The Taiwan dollar reached its weakest level since early April. Selling in local equities and transfers of funds abroad added pressure on the currency, while demand for U.S. dollars rose as investors sought safety and reduced leverage.

The market reaction followed preliminary U.S. midterm results that made a Democratic takeover of Congress appear increasingly likely. U.S. stock futures and the dollar also fell, while investors moved toward Treasury bonds. In Taiwan, investors were watching final congressional seat totals, potential changes to U.S. trade policy and further foreign fund flows.