Taiwan's benchmark Taiex closed down 755.64 points, or 1.61%, at 46,184.85 on September 11, dragged lower by electronics shares on mounting expectations of a US Federal Reserve interest rate increase, Focus Taiwan reported on September 11.

The sell-off followed US data showing the fastest monthly rise in the producer price index in August since May, alongside a jump in international crude oil prices. Odds of the Fed lifting rates by 25 basis points at its meeting next week climbed to around 70% after the PPI release, leaving Taiwan's export-heavy technology sector exposed to higher borrowing costs.

The index traded between 45,942.44 and 46,651.21 during the session, with turnover of TWD721.91bn ($22.84bn). Foreign institutional investors sold a net TWD89.27bn worth of shares on the main board, according to the Taiwan Stock Exchange.

Taiwan Semiconductor Manufacturing Co (TSMC) fell 1.63% to TWD2,410.00, accounting for roughly 320 points of the index's drop, after its American depositary receipts slid 1.68% overnight and the Philadelphia Semiconductor Index dropped 2.66%.

Smartphone chip designer MediaTek lost 2.86% to TWD4,585.00, memory maker Nanya Technology dropped 4.27% to TWD493.00 and ASE Technology Holding fell 4.92% to TWD618.00. Hon Hai Precision Industry shed 1.20% to TWD248.00 and Delta Electronics gave up 3.28% to TWD1,620.00. Quanta Computer, however, bucked the trend, edging up 0.15% to TWD336.50.

Meanwhile, the financial index rose 1.12%. E.Sun Financial Holding gained 3.00% and Mega Financial Holding added 3.61% while Fubon Financial Holding and Cathay Financial Holding were unchanged.