The main TAIEX index dropped 0.47 percent to 6,955.47 at 0104 GMT, after ending up 1.3 percent in the previous session.

Electronics shares were down 0.32 percent while financial shares fell 1.08 percent.

Formosa Petrochemical slipped 1.36 percent on media reports that its parent company said it sees no sign of recovery for the industry next year due to China's continued tightening policy.

TPK Holding rose 0.61 percent. Newspapers reported that the company said its November and December sales will be very good due to strong Thanksgiving and Christmas sales.

The Taiwan dollar was flat at T$30.389.