Taiwan stocks fall

Taiwan stocks fell 1.4 percent in their worst daily percentage drop in nearly three weeks on Friday, with TSMC leading tech heavyweights down after the world's top contact chip maker gave a subdued outlook. The main TAIEX index dropped 123.02 points to 8,644.18, its biggest percentage drop since July 12 and closing this month almost unchanged from June.
Among the biggest losing sectors, department stores and autos both sank about 2.8 percent. TSMC fell 1.37 percent, following a 2 percent drop in its ADRs in New York trading. It cut its 2011 capex spending target and third-quarter revenue forecast due to weak demand.
The fall pulled down the electronics sub-index by 1.88 percent. The semiconductor sub-index slumped 1.97 percent. "Investors had been concerned about a slowdown in the IC industry, and TSMC's weak guidance just proved them right," said J.J. Lee, chief investment officer of Fubon Financial's fund unit.
He expected the market to trade at a tight range next week as investors were sceptical that a vote by the US Congress would lead to a deal to avoid a US default. Smartphone maker HTC slipped 4.77 percent. HTC is set to brief investors later today on its Q3 outlook and answer questions about its ongoing patent dispute with Apple Inc.