TAIPEI — Taiwan’s stock market roared back on Monday, November 9, 2026, as the benchmark TAIEX surged as much as 6%, its biggest single-day gain since July 31, ending a brutal seven-session losing streak that had dragged the market into a bear market. The rebound came on the first day of tough new limits on short selling and the activation of the government’s NT$500 billion stabilisation fund, lifting chip giant TSMC and stock markets across Asia.

Key Points

• Taiwan’s TAIEX surged as much as 6% on Monday, November 9, 2026, its biggest gain since July 31, ending a seven-session losing streak, the longest since 2022.
• The index opened at 40,347.28, climbed more than 1,600 points intraday to a high of 41,399, and stood at 42,001.22 by midday, up 2,299.58 points, or 5.79%, from Friday’s close.
• TSMC rose at least 6%, MediaTek gained up to 9.88% and Delta Electronics rose 9.95%, as the chip stocks that led the sell-off led the recovery.
• The rally followed new Financial Supervisory Commission measures taking effect on Monday, capping intraday short-sale orders at 3% of a stock’s average daily volume, down from 30%, and raising the minimum short-sale margin to 130%.
• The National Financial Stabilization Fund authorised its tenth market intervention, with NT$500 billion, about $15 billion, of capacity, after the record sell-off on Friday.

What Happened

The mood in Taipei flipped the moment trading opened on Monday morning. After seven straight sessions of losses, the TAIEX opened at 40,347.28 and climbed more than 1,600 points intraday to a high of 41,399, its sharpest rise in months. By midday the index stood at 42,001.22, up 2,299.58 points, or 5.79%, from Friday’s close of 39,701.64.

TSMC set the tone. The world’s largest contract chipmaker, over 40% of the index, rose at least 6%, climbing NT$75 to NT$2,210 at the open after hitting its daily limit-down price of NT$2,020 on Friday. MediaTek gained up to 9.88% and Delta Electronics rose 9.95%.

Background and Context

Friday, November 6, was the worst trading day in the history of Taiwan’s stock market. The TAIEX plunged a record 3,737.67 points within minutes of the open, an 8.99% drop to an intraday low of 37,837.05, before noon bargain hunting eased the selling. It closed down 1,873.08 points, or 4.51%, at 39,701.64, its fourth-largest closing point loss ever, with more than 1,600 stocks closing at their daily lower limits.

The TAIEX lost 5,510 points, or 12.19%, in the week of November 2 to 6, its worst week since 2001, wiping out roughly NT$18 trillion of market value. Foreign investors drove the selling: they sold a net NT$91.188 billion of shares on Friday alone, and NT$705.7 billion across the seven sessions. The rout began after the Nasdaq fell 5.52% on November 5 on doubts about AI spending.

TAIEX Rebound: The Short-Selling Curbs Behind the Surge

Two measures did the work on Monday, and both had been announced after Friday’s close. The Financial Supervisory Commission’s five measures took effect on Monday, and the most important caps intraday short-sale orders at 3% of a stock’s average daily trading volume, down from 30%. The commission also raised the minimum margin for short sales to 130% from 90%, making it far more expensive to bet on further falls.

Alongside the curbs, the government activated the National Financial Stabilization Fund, which it had authorised on Friday with NT$500 billion, about $15 billion, available to buy stocks. It was the fund’s tenth intervention. Some of Monday’s lift also came from outside Taiwan: the Philadelphia Semiconductor Index rose 4.21% in the prior US session, TSMC’s US-listed shares gained 6.33%, and Japan’s Nikkei climbed 3.4% and South Korea’s Kospi rose 1.68%.

Reactions and Quotes

The response from Taiwan’s authorities was swift and public, and Monday’s rally was the first test of whether it would work. The stabilisation fund’s authorisation was the clearest sign the government viewed Friday’s fall as a market failure rather than a normal correction: the fund has intervened only a handful of times in its history.

Market watchers were more cautious than the headline numbers suggested. Short-sale curbs work by removing sellers, which lifts prices mechanically, and a stabilisation fund works by adding a buyer who is not selling for profit. Neither fixes the thing that started the sell-off, which is doubt about AI server spending. Moore Securities analyst Adam Lin told the Taipei Times that Friday’s noon buying had eased the selling pressure, a hint that local buyers were already stepping in.

Why It Matters

Taiwan sits at the centre of the world’s semiconductor supply chain, and the TAIEX is no longer a local story. TSMC makes the most advanced chips used by Apple, Nvidia and almost every major technology company on earth, so a record fall in Taipei is a warning signal for the entire global AI trade, and a record rebound is a signal the other way. Taiwan’s regulators moved within hours of the worst day in the market’s history, and the rest of Asia followed, with the Nikkei up 3.4% and the Kospi up 1.68%.

What Happens Next

The next hard data point is close. TSMC reports its October revenue on Tuesday, November 10, and that figure will say more about demand than any index move. Traders will also watch whether the stabilisation fund actually starts buying, and how much, and whether foreign selling resumes once the short-sale curbs are tested. Until investors see clearer evidence that AI spending is paying off, markets are likely to stay volatile, and Monday’s surge may prove to be a bounce rather than a bottom.

Frequently Asked Questions

How much did the TAIEX rise on Monday, November 9, 2026?

It surged as much as 6%, its biggest gain since July 31, ending a seven-session losing streak. By midday it stood at 42,001.22, up 2,299.58 points, or 5.79%, from Friday’s close of 39,701.64.

What short-selling curbs took effect on Monday?

Taiwan’s Financial Supervisory Commission capped intraday short-sale orders at 3% of a stock’s average daily volume, down from 30%, and raised the minimum short-sale margin to 130% from 90%.

What is Taiwan’s National Financial Stabilization Fund?

It is a government fund authorised to buy shares to steady the market in severe stress. After Friday’s close it authorised its tenth intervention, with NT$500 billion, about $15 billion, of capacity.

Why did Taiwan’s market fall so sharply last week?

The TAIEX lost 5,510 points, or 12.19%, in the week of November 2 to 6, its worst week since 2001, after the Nasdaq fell 5.52% on November 5. Foreign investors sold a net NT$705.7 billion of shares across seven sessions.

What happens next for the TAIEX?

TSMC reports October revenue on Tuesday, November 10. Traders will watch whether the stabilisation fund starts buying, whether foreign selling resumes, and whether the AI-spending outlook steadies.

Related: Taiwan stocks plunge as TAIEX suffers record 3,738-point intraday fall • Nikkei plunges 6% in third-biggest drop ever as AI rout spreads across Asia • Global markets slide as Nasdaq enters correction and Australia raises rates to 4.85%