On June 23, iShares MSCI Taiwan ETF (EWT) fell 5.26% in pre-market trading, trading at $104.52/share, with turnover of $119,100.
The decline was driven by a sweeping global selloff dubbed Black Tuesday, as AI bubble fears triggered heavy unwinding of crowded positions in AI and computing-related stocks. A key MSCI sub-index tracking Asian tech stocks plunged nearly 5%, ending an eight-day winning streak. Market analysts have flagged the Taiwan stock market as a prime example of AI bubble risk, citing a 100%-plus rally over the past year, tech stocks comprising approximately 80% of the benchmark index weight, and margin financing volumes surging 160% over twelve months. The concentrated tech exposure and excessive leverage have amplified downside risks significantly.
EWT tracks the MSCI Taiwan Index, a free float-adjusted market capitalization-weighted index designed to measure the performance of large- and mid-cap equity segments in Taiwan. The fund generally invests at least 80% of its assets in component securities of its underlying index.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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