Taiwan Index Futures Tumble Record 3,006 Points as US Rate Fears Trigger Margin Stress
Updated
Updated · 台北時報 · Jun 6
Taiwan Index Futures Tumble Record 3,006 Points as US Rate Fears Trigger Margin Stress
2 articles · Updated · 台北時報 · Jun 6
Summary
TAIEX futures sank 3,006 points in after-hours trading Friday, the biggest point drop on record, after the Philadelphia Semiconductor Index fell more than 10%.
US jobs data came in stronger than expected, stoking bets the Federal Reserve will delay rate cuts and helping spark the Wall Street sell-off that spilled into Taiwan's tech-heavy market.
NT$600,000 losses hit a standard futures contract and NT$150,000 a mini contract, enough to push some minimum-margin retail positions below the 25% liquidation threshold overnight.
Brokers said accounts falling under the roughly NT$443,000 maintenance margin would have to add funds during Monday morning's session or face another round of forced liquidations by noon.
The cash market now faces a similar test: if stocks track futures lower, margin accounts near 140%-150% maintenance could approach the 130% call line, though some brokerages say tighter lending has kept overall ratios above 170%.