Taiwan Activates Market-Stabilization Measures to Stem AI Bleeding

Taiwan's National Financial Stabilization Fund authorized its executive secretary at an emergency meeting Friday to deploy funds as needed to stabilize the market, joining South Korea in responding to a global selloff in AI-related stocks. The Taiex fell 12% this week and is about 20% below its 2026 high, which officials attributed to the U.S. midterm elections and continued foreign-investor selling. The fund, which has up to 500 billion Taiwan dollars (about US$15.11 billion) available, said fundamentals remain sound but the market is dominated by high-tech stocks closely correlated with the Philadelphia Semiconductor Index; the Financial Supervisory Commission will tighten short-selling restrictions from Nov. 9 and encouraged share buybacks and investor briefings.