Taiwan's stock market has recovered some of its losses from a record plunge the day before, part of a broader global sell-off sparked by fears of a recession in the U.S.
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00:00Taiwan's stock market has come roaring back a day after plunging a record 8.4%. It's part
00:07of a recovery after big drops, not just in Asia, but also in the United States and Europe
00:12due to fears the US could be heading towards recession. Louise, what is it Taiwan's stock
00:18exchange for us? Louise, how is it looking there?
00:23Well, the morning after a record plunge, Taiwan's market opened strongly. It was up 4%. It lost
00:31some of these gains quite quickly, but then it's clawed them back and it's just closed
00:36up 3.4%. Now, yesterday, Taiwan's market was pulled down by falls in tech stocks, but they've
00:46rallied as well today. TSMC, Taiwan's chip-making giant, that finished up 8% and other tech
00:55companies like MediaTek, Quanta, well, they've rallied as well. Now, Taiwan was one of several
01:02markets in Asia and across the world that fell yesterday amid fears that the United
01:09States could be headed for a recession. And that's one reason. Another reason was disappointing
01:16financial results from tech companies, major tech companies like Intel, Alphabet and Amazon.
01:24Now, that's led to investors worrying about the stability of these stocks and also renewed
01:33questions over whether tech companies can make money from artificial intelligence or
01:39AI. Now, Taiwan has a role to play in this because it produces most of the world's most
01:46advanced semiconductors or chips. So, the thinking goes that if there's less confidence
01:52in AI, perhaps there will be less demand for Taiwanese technology. So, the euphoria around
02:01AI, the frenzy that's been going on in recent months, well, that looks like it might be
02:06subsiding somewhat. And there are concerns that shares in companies that have been investing
02:13heavily in AI like Nvidia, well, perhaps they're overvalued. But the consensus among
02:20most analysts is that this is simply a healthy correction and it doesn't mean the start of
02:27a bear market. So, after all, the U.S. economy is still growing and a recession is far from
02:35a certainty. So, here it's been a better day than yesterday, although traders are still
02:43expecting some volatility ahead.