Taiwan stocks fell 1.06 percent on Friday, reversing gains earlier in the day, led by losses in heavyweights including TSMC amid investor jitters about a global recession. Some fund managers saw selling pressure rising at the key psychological barrier of 8,000 points, reflecting worries that the US and European governments will cut spending and private investment will decline.
"Global markets will continue to be volatile. The signals so far are mixed, with US jobless rates improving, but major countries' spending will be on its way down," said Yu Reming, chief investment officer of Prudential Financial in Taipei. The main TAIEX index was down 82.07 points at 7,637.02, closing a volatile week with an about 3 percent loss.
TSMC, the world's top contract chip maker, dropped 1.96 percent, pulling electronics shares 0.95 percent lower. Among the most hit sectors, cement and automobiles both shed more than 2.6 percent. Foreign investors were net sellers on Thursday, bringing their total selling to T$145 billion this month.
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