Taiwan tech stocks hit as Biden drops out of U.S. race

Analysts say high valuations and political uncertainty are increasing volatility

Taiwanese chip and tech are being buffeted by political uncertainty in the U.S. as the presidential election approaches. © Reuters

CHENG TING-FANG and LAULY LI, Nikkei Asia tech correspondents

July 22, 2024 13:08 JST

Updated on July 22, 2024 16:55 JST

TAIPEI -- Top Taiwanese tech stocks dipped on Monday after U.S. President Joe Biden announced he was withdrawing from the presidential race, the latest political development to shake Asia's chip technology economy.

The benchmark Taiex index -- which was up nearly 28% this year as of July 19 -- ended the day down 2.68%, having fallen more than 3% at one point on Monday.