TAIPEI: Taiwan stocks fell 1.56 percent to a more than two-month closing low on Thursday as concern over government discussions on a possible tax on stock profits compounded worries over the global economy that sent other regional bourses lower.
The main TAIEX index shed 121.03 points to 7,639.82, marking its lowest close since early February and extending its slump to 5 percent in five sessions. At one point in Thursday's session it was down 3 percent.
The finance ministry will hold meetings Thursday and Friday of its tax reform team to discuss whether to levy a capital gains tax.
Among the worst hit, automobiles and banks both were down over 2 percent. Electronics sank 1.06 percent.
A couple of bright spots were flat panel makers Chimei Innolux and AU Optronics, rising 2.2 percent and 4.7 percent, respectively.
Chimei, the world's No.3 LCD panel maker, will formally sign on Thursday an agreement with banks extending loan repayments, a source with direct knowledge of the matter said, offering some breathing space to the loss-making company as it struggles with weak demand and falling prices for LCD panels.
AU will start mass production of panels using AMOLED technology for Sony in the second quarter, local media reported.
The Taiwan dollar weakened by T$0.012 to trade at T$29.492.
Foreign investors were net buyers on Tuesday, bringing their total buying to T$3.5 billion this month. The market was closed for a public holiday on Wednesday.