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Taiwan’s Stock Crash Deepens as Traders Unwind Leveraged Bets

  • Level of margin debt falls most since 2018 amid equity losses
  • Stock gauge falls 11% from peak, enters technical correction
Bloomberg business news
WATCH: Frank Benzimra, head of Asia equity strategy at Societe Generale, discusses the outlook for Taiwan stocks. (Source: Bloomberg)
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Taiwan stocks sank for a third day in volatile trading, extending a rout that’s triggered the fastest liquidation of leveraged positions since 2018.

The Taiex closed 1.5% lower at 15,670.10 points, taking its decline from the April 27 peak to 11%, a technical correction. Over the past four days, the benchmark lost 9.3% on concerns over further tightening of coronavirus-linked restrictions. It briefly pared losses on Thursday morning after Apple Daily reported that the government sees a lower chance of raising the Covid-19 alert level.