Taiwan is bracing for the impact of Super Typhoon Krathon, leading to the unprecedented closure of its $2.5 trillion stock market. As the storm approaches, authorities have taken proactive measures to ensure public safety and prepare for severe weather conditions.
Stock Market Closure Amid Storm Preparations
In an official announcement, Taiwan’s exchanges confirmed that there will be no trading in securities, currency, or fixed-income on Wednesday. This decision follows the pattern set earlier in the year during other extreme weather events.
Impact on Daily Life
The storm’s arrival has already disrupted daily life across the island.
- Schools and offices have been closed in various cities and counties, particularly in southern and eastern regions, including the industrial hub of Kaohsiung.
- Many flights, ship sailings, and some train services were cancelled in anticipation of the storm’s impact.
Typhoons are a common occurrence in Taiwan, which has a history of shutting down markets and public services during severe weather events. In July, offices and schools were closed for two days as Typhoon Gaemi wreaked havoc.
Preparations and Safety Measures
With Krathon approaching, Taiwan’s authorities have been swift in their response. They have initiated several safety measures:
- Military personnel have been deployed to the south and east to assist in emergency responses.
- Authorities have completed a dramatic helicopter rescue of 19 crew members from a ship that foundered due to the storm.
Taiwan Semiconductor Manufacturing Company (TSMC) Responds
Taiwan Semiconductor Manufacturing Company, the world’s leading chipmaker and a key supplier for major firms like Apple Inc. and Nvidia Corp., has activated its typhoon alert procedures across all fabrication plants and construction sites. In a recent statement, TSMC reassured investors and stakeholders that it does not expect significant disruptions to operations.
Current Status of Typhoon Krathon
As of Tuesday morning, Typhoon Krathon, known as Julian in the Philippines, had exited Philippine waters, with no immediate reports of casualties in its wake. However, Taiwan has issued wind and rain advisories, and residents are urged to stay vigilant.
Recent Market Volatility
The closure of Taiwan’s stock market follows a period of volatile trading. On Monday, the benchmark Taiwan Stock Exchange Weighted Index experienced a 2.6% drop, marking its largest decline in over three weeks. However, there was a rebound on Tuesday, with traders remaining on high alert for any further disruptions caused by the storm.
Conclusion: Preparedness is Key
Typhoon Krathon’s approach serves as a stark reminder of the power of nature and the importance of preparedness. Taiwan’s swift actions, from closing its stock market to mobilising military personnel, highlight the country’s commitment to safeguarding its citizens.
As we continue to monitor the situation, it’s crucial for individuals and businesses to remain informed and take necessary precautions. The resilience of Taiwan’s economy and its people will be tested, but with the right measures in place, the island will weather this storm.
Staying safe during such natural disasters is a priority, and I hope that everyone in Taiwan finds the strength to navigate this challenge.
