SELL-OFF: Optical shares led the plunge, followed by electronics, as concern over the escalating trade war between Turkey and the US rattled the local equity market

Taipei Times
Date: Aug 14, 2018
By: Crystal Hsu  /  Staff reporter

The TAIEX yesterday tumbled 234.76 points, or 2.14 percent, to 10,748.92 points, as a renewed rout in the Turkish lira triggered a sell-off, with optical and electronics plays being the hardest hit, analysts said.

The plunge came after US President Donald Trump on Friday said he would double tariffs on aluminum and steel imports from Turkey, reigniting fears about the Turkish economy and sending its currency into a nosedive.

“We believe the Turkish issue will not escalate into a global financial crisis, although it has added uncertainty to the global economy and facilitated capital flight from emerging markets,” SinoPac Financial Holdings Co (永豐金控) chief economist Jack Huang (黃蔭基) said.

The local bourse and the New Taiwan dollar have been affected since late in the second quarter — a situation that is likely to persist throughout this year, Huang said.    [FULL  STORY]