Today (21st), the Taiwan stock market was heavily impacted by escalating US-China trade tensions, with the weighted index dropping by 288.83 points to close at 19,106.20 points, a decline of 1.49%. The trading volume totaled NT$207.7 billion, and the over-the-counter index fell even more sharply by 2.79% to 206.22 points.

Investor sentiment was dampened by reports that President Trump might request major economies to limit trade with China, causing heightened caution in Asian markets. US futures also reacted with weakness early in the day. In contrast, China responded firmly, threatening retaliation if other countries comply with US sanctions, raising international trade risks.

Significant focus remained on large-cap stocks, with TSMC (2330) experiencing substantial selling pressure, plummeting 15 NT dollars to 835 NT dollars, contributing to over a hundred points drop in the overall index. Conversely, Hon Hai (2317) managed a slight gain of 1 NT dollar, ending at 136.5 NT dollars, while Nanya Technology (2408) was one of the few bright spots, rising by 3.5 NT dollars or 9.91% on favorable market conditions.

On the downside, ASE Technology (3661) experienced a stark decline, falling 100 NT dollars to 2,105 NT dollars, a drop of 4.53%. The electronics sector faced heavy foreign selling, with tech stocks significantly affected. In particular, high-priced stocks such as MediaTek and Winbond saw similar declines, reducing overall market confidence.

The Taiwan stock market is threatened by political pressure from the US-China relationship and substantial selling in tech stocks, leading to a collapse of the bull market. If the trade situation between China and the US doesn’t exhibit signs of resolution soon, the index may continue to seek technical support. Currently, the market is in a high-uncertainty zone, and investors are advised to adopt a conservative approach and reduce their shareholding ratios, keeping an eye on Trump's negotiation outcomes and US exchange rate policies.