The Taiwan Stock Exchange is bracing for further declines after finishing lower in back-to-back sessions, shedding more than 170 points or 0.8 percent combined.
The index now sits just below the 22,100-point level, with market watchers warning that additional losses could follow as global sentiment deteriorates.
On Tuesday, the TSE sank 142.89 points or 0.64 percent to close at the daily low of 22,092.21, after touching an intraday high of 22,303.50 earlier in the session.
Losses were broad-based, with financial shares, technology stocks, and plastics companies all weighing on the benchmark index throughout the trading day.
Among the notable decliners, Nan Ya Plastics tanked 2.25 percent, while Largan Precision tumbled 1.76 percent and E Sun Financial stumbled 1.60 percent.
Taiwan Semiconductor Manufacturing Company (TSM) dropped 0.84 percent, and MediaTek fell 0.41 percent, adding to the drag from the technology sector.
Not all stocks moved lower, as Hon Hai Precision bucked the trend with a gain of 1.09 percent amid the otherwise broadly negative session.
The global forecast for Asian markets is widely negative, with European and U.S. markets having posted sharp losses that regional bourses are now expected to follow.
Wall Street delivered a brutal lead, with the Dow plunging 626.15 points or 1.51 percent to finish at 40,836.93, while the NASDAQ plummeted 577.33 points or 3.26 percent to close at 17,136.30.
The S&P 500 tumbled 119.47 points or 2.12 percent to end at 5,528.93, compounding concerns for investors across Asia heading into the next trading session.
The sell-off in U.S. markets was triggered in part after the Institute for Supply Management reported a continued decline in U.S. manufacturing activity during August.
A separate report from the Commerce Department unexpectedly showed a modest decrease in U.S. construction spending for July, adding to the negative economic signals driving the market lower.
Some traders also moved to lock in profits from the previous session’s gains amid ongoing uncertainty about the pace at which the Federal Reserve will cut interest rates.
According to CME Group’s FedWatch Tool, there is a 63.0 percent chance of a quarter-point rate cut at the Fed’s next meeting and a 37.0 percent chance of a half-point reduction.
Oil markets also came under heavy pressure, with West Texas Intermediate Crude futures for October ending down $3.21 or 4.4 percent at $70.34 a barrel, hitting a nine-month low on oversupply concerns from OPEC.
