(Bloomberg) -- Taiwan will close its $2.5 trillion stock market as Super Typhoon Krathon approaches the island with strong winds and heavy rain.
The market will not conduct securities, currency or fixed-income trading on Wednesday, according to statements from its exchanges. On Tuesday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung.
Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices, schools and suspended the stock market for two days as storm Gaemi brought strong winds and heavy rain.
Taiwan Semiconductor Manufacturing Co. has activated routine typhoon alert preparation procedures at all its fabs and construction sites in the island, according to an emailed statement from the company. The main chipmaker for Apple Inc. and Nvidia Corp. said it doesn’t expect significant impact on operations.
While the storm has yet to make landfall, Taiwan’s authorities started preparations days ago, sending out hundreds of military personnel to the south and east of the island, which is already experiencing heavy rain. They also completed the dramatic helicopter rescue of 19 crew members on a stricken ship that foundered due to the typhoon.
Also read: Taiwan Rescues All on Stricken Ship as Super Typhoon Approaches
Krathon, known as Julian in the Philippines, had left that country’s waters as of Tuesday morning, according to its weather bureau. There were no immediate reports of casualties from the northern part of the nation, where the storm formed earlier this week.
Taiwan’s market suspension comes after volatile trading in recent days. The benchmark Taiwan Stock Exchange Weighted Index fell 2.6% on Monday, its biggest drop in more than three weeks, before a rebound on Tuesday. The exchange is home to TSMC, and traders are keenly watching for any possible disruption from the typhoon.
©2024 Bloomberg L.P.
