Taiwan activates $15 billion stabilization fund after market slump

Taiwan has authorized the activation of its $15 billion National Stabilization Fund to support the stock market following two days of sharp declines triggered by new U.S. import tariffs.

The decision comes after U.S. President Donald Trump announced a 32% tariff on Taiwanese imports last week, prompting a heavy sell-off when local markets reopened on Monday after a holiday break. The benchmark index (.TWII) tumbled nearly 10% on Monday and fell another 4% on Tuesday, reaching its lowest level in 14 months.

Taiwan’s finance ministry said the fund, which holds around T$500 billion ($15.15 billion) in assets, has been authorized to step in "as appropriate" to stabilize trading. The ministry cited persistent foreign investor selling and a "strong international panic atmosphere" as factors undermining market confidence.

The stabilization fund has previously been deployed during periods of major market stress, including at the onset of the COVID-19 pandemic.