Taiwan stocks close steady despite losses

Taiwan stocks held steady on Friday despite losses in major industrial shares like China Steel Corp after a surprise rate hike by China's central bank as tech and banking shares helped to support the market.
The TAIEX share index edged up 10.37 points, or 0.18 percent, to close at 5,705.93, adding to the last session's rebound from a more than two-month closing low.
China Steel was the most actively traded issue and lost T$0.20, or 0.59 percent, to close at T$33.60 - despite posting a 52 percent gain in quarterly profit on Thursday - as China's interest rate rise hit global commodities prices.
"Impact from the news about China started in US markets and spread back here," said Hotung Securities research chief Albert Lin. "Industrial shares have already had a wave of corrections earlier and this should bring them to a reasonable valuation."
The People's Bank of China raised benchmark interest rates by 0.27 percent points on Thursday, aiming to guide a heated economy into slower growth.
China's voracious demand for commodities and raw materials have made Taiwan's industrial shares some of 2004's best performers, with the steel sub-index up 19 percent since the beginning of the year despite recent corrections.