Taiwan stocks reverse course to end higher

Taiwan stocks reversed course to end up 0.26 percent on Thursday, although trading was thin due to the holiday season and ahead of a central bank rate-setting policy meeting due later in the day. The main TAIEX index gained 18.15 points to 7,074.82, supported by department stores and tourism shares, up 1.59 percent and 1.29 percent respectively.
At this mark, the main index is set for its worst performance since 2008, down about 20 percent so far this year. Financials shed 0.17 percent. A rate cut by the central bank would narrow banks' already thin spreads. In a Reuters poll last week of 17 economists, 15 forecast the central bank would leave the discount rate on hold at 1.875 percent, but two expected a cut of 12.5 basis points to 1.750 percent. The Taiwan dollar rose slightly to trade at T$30.286. Foreign investors were net buyers on Wednesday, bringing their total buying to T$29.8 billion this month.