Taiwan activates $15 billion stock stabilisation fund after precipitous falls

Reuters

Tue, Apr 8, 2025, 4:17 AM 1 min read

TAIPEI (Reuters) - Taiwan authorised the activation of its $15 cardinal banal stabilisation money connected Tuesday to prop up the marketplace aft 2 days of crisp falls successful absorption to U.S. President Donald Trump's caller import tariffs.

Trump past week announced that Taiwan, which runs a ample commercialized surplus with the United States, volition get a 32% tariff, sending the markets into a tailspin connected Monday aft they re-opened pursuing a Thursday and Friday holiday.

Taiwan's concern ministry said successful a connection that the government-run National Stabilisation Fund, which has immoderate T$500 cardinal ($15.15 billion) successful assets that tin bolster Taiwan stocks successful times of crisis, had been fixed the spell up to intervene successful the banal market.

The money has been authorised to usage its assets "to transportation retired marketplace stabilisation tasks arsenic due to support the stableness of Taiwan's banal trading market", it said.

On Monday, the benchmark scale dropped by adjacent to 10% and it fell different 4% connected Tuesday, hitting its lowest level successful 14 months.

Noting that the "international panic ambiance was strong", overseas investors person continued to merchantability their holdings since the commencement of the year, it said.

"This is not conducive to the stableness of the Taiwan Stock Exchange," the ministry added.

Taiwan has antecedently activated the money to prop up the banal marketplace astatine different times of turmoil, specified arsenic astatine the commencement of the COVID pandemic.

($1 = 33.0030 Taiwan dollars)

(Reporting by Ben Blanchard; Editing by Andrew Cawthorne and Kim Coghill)