Taiwan shares fell 0.11 percent on Thursday as losses on Wall Street triggered selling in tech exporters such as TSMC ahead of quarterly profit reports, pulling the market away from a 6-1/2-year high. The main TAIEX share index was trapped in a tight range before ending down 9.25 points at 8,075.20. Turnover was modest at T$107.97 billion ($3.26 billion).
"The momentum on those big-cap stocks has slowed and cautious investors are reluctant to buy before the earnings season comes to an end," said Kevin Lin, manager at Shinkong Investment Trust. But he saw initial support at 8,000 points. Shares in Taiwan Semiconductor Manufacturing Co Ltd (TSMC), which sells a big share of its microchips to North America, shed 1.15 percent.
TSMC, the world's biggest contract chip maker, and other major tech companies in Taiwan are set to release their first-quarter profits in late April. Investors will focus on their guidance for the second quarter. The financial sub-index dropped 0.89 percent. Shin Kong and Taiwan Life were down 0.16 percent and up 0.33 percent, respectively, following news that they were close to establishing insurance joint ventures in China.
While index heavyweights weakened, smaller cyclical issues extended recent run-ups, inspired by growing global demand and higher product prices. Steel maker Yieh Phui Enterprise Co Ltd shot up 6.33 percent and Shinkong Synthetic Fibres Corp surged 6.7 percent to its daily limit.
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