Taiwan stocks tumbled to a one-month low at Thursday's close as falling US shares and Beijing's determination to cool raging growth led investors to cash out of China plays and tech heavyweights like UMC.
The TAIEX share index gave up 2.62 percent to end at 6,402.21, its weakest close since March 26. Turnover was active at T$130.3 billion, up from T$107.5 billion on Wednesday.
United Microelectronics Corp (UMC), the world's second-largest contract microchip maker, slumped 3.38 percent in heavy trade despite posting a 17-fold jump in quarterly profits on Wednesday, as overseas fund managers slashed positions in Asian markets.
"UMC's results met expectations, but foreign investors are selling foundry shares after buying a lot last week and it looks like stop-loss selling after the Nasdaq's drop," said Richard Tsai, senior vice president at Grand Cathay Securities.
"China-related shares like steel and transport are also falling," Tsai said.
"It looks like people are taking a much more conservative view on the China story."
The Dow Jones industrial average gave up 1.29 percent and the Nasdaq composite index fell 2.12 percent on Wednesday on concerns over rising interest rates, tensions in Iraq and China's efforts to rein in runaway growth.
China-related shares around the region tumbled after China's premier told Reuters the country would take "very forceful" action to cool its red-hot economy. Chinese firms listed in Hong Kong were down nearly five percent.
Taiwan's second-largest shipper, Yang Ming Marine, lost 4.84 percent and the island's biggest steel-maker, China Steel fell 4.92 percent. Virtually all of China Steel's products end up in the mainland after going through several links in the production chain.
The over-the-counter TAISDAQ share index gave up 3.06 percent to end at 142.80, while May TAIEX futures slipped 206 points, or 3.12 percent, to 6,499, steady with the market's spot price.
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