Taiwan stocks closed on Thursday at their weakest level since early June after record-high oil prices dragged Wall Street lower, but tech firms that have improving fundamentals defied the weakness.
The TAIEX share index ended 0.29 percent lower at 6,109.66 points, extending the last session's 1.1 percent drop and falling below the half-year moving average near 6,120.
Soft turnover of T$74.79 billion ($2.32 billion) showed that investors were reluctant to buy ahead of the August 31 deadline by which Taiwan companies have to report first-half earnings.
"There is no doubt that market sentiment was weak but we saw buying in LCD and some growth stocks, which cushioned the fall," said Chiang Chen-sheng, manager at MasterLink Investment Advisory.
"Only when the buying spreads to other sectors can we say we have seen an initial support," he said.
The heavily weighted electronics sub-index gave up earlier gains to end down 0.17 percent. The financial sector dropped 0.34 percent.
AU Optronics Corp, the world's third-largest maker of liquid crystal displays (LCDs), jumped 1.17 percent to T$51.80 amid growing optimism over demand for computers and flat-screen televisions.
High-priced growth stocks also outperformed.
Benefiting from growing appetite for consumer products, smartphone maker High Tech Computer Corp surged 4.90 percent to T$353.00 and Catcher Technology, which makes magnesium casings for laptop PCs, added 2.67 percent to T$231.00.
However, United Microelectronics Corp (UMC), the world's number-two contract chip maker, lost 1.45 percent to T$20.35 and optical disk maker Ritek Corp slumped the daily 7 percent limit to T$11.50.
The over-the-counter market's TAISDAQ index dropped 0.15 percent to 122.72 and September TAIEX index futures fell 0.34 percent at 6,126.
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