Taiwan urges financial regulator to stabilize stock market after AI-driven sell-off

The Taiwanese government has instructed its Financial Supervisory Commission to stabilize the local stock market after the Taiex index opened with losses of up to 8.85%, driven by concerns over the future of artificial intelligence. Premier Cho Jung-tai said he asked the regulator to closely monitor market developments and decide flexibly to stabilize the exchange, while emphasizing that market operations are determined by market forces. He cited Taiwan's economic growth of over 14% year-on-year in the first nine months as a basis for confidence. The decline follows the Democratic Party's victory in both chambers of the U.S. Congress, raising fears of tighter restrictions on AI development and data center investment. Wall Street's Nasdaq fell 5.52% in the previous session amid AI stock sell-offs.