Taiwan stocks fell 0.65 percent on Friday, tracking a drop on Wall Street, with the technology index sliding ahead of key sales data from TSMC and UMC, the world's top two contract chip makers. The main TAIEX share index ended down 54.55 points at 8,300.71, easing from a seven-year closing high on Thursday.
The electronics sub-index fell 0.86 percent weighed down by a 1.25 percent slide in UMC. After the market closed, UMC, the world's No 2 contract chip maker, posted a 3 percent drop in its May sales, although the result improved from April thanks to a recovery fuelled by new PCs and consumer devices.
Bigger rival TSMC bucked the broader market trend to close up 1.08 percent. It said after the market closed its May sales fell 6 percent. The financial sub-index dipped 0.09 percent after ABN Amro said on Friday it would buy branches of a failed Taiwan lender.
US stocks tumbled on Thursday as Treasury yields surged above 5 percent, reinforcing fears that global inflation would force borrowing costs to rise. "It seems the biggest risk everybody is worried about is finally happening," said John Kuo, who manages T$8 billion (US $242 million) for Fuh Hwa Securities Investment Trust.
"You've got to be very careful if the Fed raises interest rates." Kuo has 40 percent of his portfolio in stocks, sharply down from 70 percent early this week. Turnover jumped to T$133.7 billion from T$122.9 billion on Thursday.
Taishin Financial fell 0.9 percent. The firm said after the market closed that it would set up a life insurance tie-up with Dutch insurer Aegon NV. Nanya Technology, Taiwan's No 2 DRAM chip maker, closed 0.18 percent lower. Nanya told Reuters it expects to post a loss in the current quarter.
Comments
Comments are closed.