Taiwan Stocks Tumble at Fastest Pace on Record Valuations

Taiwanese stocks are tumbling at the fastest pace in Asia as record high valuations versus the region and slumping exports prompt foreign investors to sell.

The benchmark Taiex Index has lost 7.5 percent since the end of September, leading declines among Asia’s developed and emerging markets, after its average valuation reached 18 times estimated earnings, 43 percent higher than the MSCI Asia Pacific Index’s multiple. Overseas investors sold a net $803.5 million of Taipei-listed shares this quarter to yesterday, the second-biggest outflows after South Korea among 10 Asian markets tracked by Bloomberg.