The main TAIEX index lost 64.59 points to close at 7,700.43, weighed down by electronics shares, which dropped 0.7 percent.

Innolux, the world's No.3 flat panel maker, shed 5.3 percent and smaller rival AU Optronics lost 4 percent.

The Taiwan dollar jumped T$0.083 to stand at T$28.973 to the US dollar.