(Bloomberg) -- Taiwan’s stock market slid again on Friday, taking its decline from a January high to over 20% and is on track to enter a bear market.

The Taiex gauge dropped as much as 1.1% in Taipei. Taiwan Semiconductor Manufacturing Co., which accounts for more than a quarter of the index’s weighting, declined as much as 2.1%.

Tech-heavy equity markets in Taiwan and Korea were among the worst performers in Asia last quarter, both down over 15% amid rate hikes by global central banks. Foreign investors net sold more than $16 billion of Taiwan stocks during the three-month period, the most among emerging Asian markets outside of China. 

“Taiwan stocks declined due to several negatives including global inflation concerns, growth slowdown fears, and rate hikes, which lead to global funds returning to the US from emerging markets,” said Li Fang-kuo, chairman of President Capital Management. “The downward trend of Taiwan stocks will continue, so investors should avoid catching the falling knife.”

Investor sentiment soured on tech stocks globally due to fears of a global recession and a cautious outlook for the semiconductor sector. The Taiwan Stock Exchange said in a statement on Thursday that it will adopt stabilizing measures if needed when there are “irrational” declines in the stock market. 

Separately, Taiwan’s deputy finance minister said the National Financial Stabilization Fund will continue to monitor the stock market to see if it needs to step in. 

SinoPac Securities Investment Service Corp in a note said that a cancellation of tariffs on Chinese goods by the Biden administration, if it happens by July 6, will boost markets.

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