Preliminary vote counting in the 2026 U.S. midterm elections shook global financial markets. As the prospect of Democrats taking control of Congress became clearer, investors worried that President Donald Trump’s policy agenda could run into serious resistance. That political uncertainty triggered a repricing across global assets, sending U.S. stock index futures and the dollar lower while safe-haven money moved into U.S. Treasuries.
Taiwan equities extend sell-off
The shock reached Taipei’s stock and currency markets. Taiwan shares were hit by heavy selling for a second consecutive trading day. By press time, the Taiex had dropped more than 1,400 points, a decline of 3.25%. Major electronics and semiconductor heavyweights were among the key names sold by foreign investors, as the market focused on the risk of political gridlock in Washington.
New Taiwan dollar falls to 32.9
In foreign exchange, the New Taiwan dollar came under strong depreciation pressure after foreign investors sold Taiwan stocks and moved funds out quickly. The currency weakened to 32.9 against the U.S. dollar intraday, the highest level since early April this year. Demand for U.S. dollars jumped across the market, reflecting a clear move toward hedging and deleveraging by overseas funds.
Focus turns to congressional seats and capital flows
Market analysis cited in the report said changes in the U.S. political situation directly affect the direction of global trade policy. In this period of sharp volatility, investors are closely watching the final confirmation of U.S. congressional seats and the next direction of foreign capital flows. In the near term, Taiwan stocks may continue to face a volatile consolidation phase.
