(Bloomberg) -- Overseas investors withdrew NT$85.8 billion ($2.6 billion) from Taiwan shares on Friday, as an outlook cut by heavyweight Taiwan Semiconductor Manufacturing Co. and weakness in global markets soured sentiment.

The largest foreign selloff in more than three years pushed Taiwan’s tech-heavy stock benchmark 3.8% lower, marking its biggest fall since October 2022. The local dollar closed at the lowest level since 2016.

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Taiwan’s state-backed banks actively provided dollar liquidity in the foreign exchange market throughout the day amid significant outflow pressure, according to two traders who asked not to be identified as they are not authorized to comment publicly.

Friday’s foreigner selloff came as TSMC, the world’s largest maker of advanced chips with the largest weighting in the Taiwan stock gauge, cut back its outlook for a chip market expansion.

--With assistance from Shikhar Balwani.

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