Areas Traders Focus On as Taiwan Lockdown Risk Looms

  • Investors fear full lockdown may hurt semiconductor sector
  • Citigroup trims Taiex benchmark target to 14,500 from 14,900
A pedestrian passes a restaurant on a deserted street in the Ximending district of Taiwan on May 17.Photographer: Billy H.C. Kwok/Bloomberg
Lock
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Taiwan’s collapse from one of the world’s most successful Covid-19 containment stories rattled investors last week. Now, as new daily infections remain elevated and the island extendsBloomberg Terminal pandemic-linked restrictions, traders are girding for a full-scale lockdown.

The Taiwan Stock Exchange Weighted Index slumped more than 7% from its all-time high in April amid concerns over the economic impact of escalating virus cases. Officials on Wednesday extended Level 3 measures like capping social gatherings and closing schools and other venues that were previously limited to the greater Taipei area.