Pomegra
Taiex Jumps 5% After Short-Selling Curbs
Why is the Taiex up today?
Taiwan's Taiex (^TWII) rose about 5% to 41,680 on Monday after regulators capped short selling and launched a NT$500B stabilization fund, recovering part of last week's 12.19% slide.
Key numbers
| Taiex close (Nov 9) | 41,680+4.98% (per [3]) |
|---|---|
| Taiex intraday peak | +6.7%vs ~5% at close; reports differ |
| TSMC (2330.TW) close | NT$2,235+NT$100 (+4.7%) (per [3]) |
| Taiex last week | 39,702 (Fri close)-12.19% for the week |
| Stabilization fund | NT$500Babout US$15B, 10th use |
| Nikkei 225 | 59,411+3.4% |
What happened
Taiwan's Taiex (^TWII) rose about 5% to 41,680 on Monday after regulators capped short selling and launched a NT$500B stabilization fund, recovering part of last week's 12.19% slide. Short selling is betting that a stock will fall; the daily limit on it was cut to 3% of average trading volume from 30%, and the required deposit (margin) rose to 130% from 90%. The fund, worth about US$15 billion, can buy shares to prop up prices. TSMC (2330.TW) closed up about 4.7% at NT$2,235, and Japan's Nikkei 225 gained 3.4%.
Why it matters
The Taiex rebound matters because TSMC alone makes up over 40% of Taiwan's stock market value, so its swings move the whole index. Last week's 12.19% fall was the worst since 2001, during a global selloff in AI stocks. Government action steadied prices for now, but the index is still below where last week began.
Who this affects
- MarketmixedHigh impact
- Asian investors gain relief rally, but swings remain large.
- CompanybullishMedium impact
- TSMC shareholders recover part of last week's losses.
- CompetitorsbullishMedium impact
- Korean and Japanese chip stocks also rose with Taiwan.
- IndustryneutralMedium impact
- Short sellers face tighter limits and costlier bets.
Taiex vs Nikkei 225, Kospi
| Taiex (Taiwan)^TWII | 41,680 | +5.0% | -4.5% |
|---|---|---|---|
| Nikkei 225 (Japan)^N225 | 59,411 | +3.4% | about -6% |
| Kospi (South Korea)^KS11 | 5,137 | +1.5% | about -6% |
As of 2026-11-09
How we got here
Taiex closes down 4.5% at 39,701.64 after a 9% intraday plunge.
Taiwan authorizes NT$500B stabilization fund and announces short-selling curbs.
Curbs take effect; Taiex closes up about 5% at 41,680.
What to watch
- How much of the NT$500B fund is actually used to buy shares2026-11-13
- Whether foreign investors keep selling after NT$524B in net sales last week2026-11-13
Educational content only. Not investment advice.
More briefsAll briefs →
Semiconductor Index Plunges 12% on AI Regulation Fears
Chip stocks (SOX) led a selloff that cut the Dow by 1,833 points and pushed the Nasdaq into a correction.
Nvidia Stock Falls 3.4% After Hours as Board Opens CEO Probe
Nvidia (NVDA) trades near $180 versus Friday's $186.64 close as its board examines a Chinese spy link.
Constellation Energy Stock Drops 8% on Data Center Curbs
Constellation Energy (CEG) reports today as a planned Texas data center pause sent rival Vistra down 14%.