Taiwan stocks fell 1.8 percent on Tuesday, hurt by index heavyweights such as TSMC as a major sell-off on Wall Street raised concerns over slower technology demand next year. The main TAIEX index dropped 152.57 points to close at 8,375.76, after sliding to a three-month intraday low.
The electronics subindex fell 1.8 percent and the bank and insurance subindex lost 1.6 percent. "The domestic market is extremely weak now and is closely tracking Wall Street moves, and the weak US dollar is hurting many firms who sell to clients there," said Masterlink Investment Advisory manager Chiang Chen-sheng.
Some T$115.92 billion ($3.6 billion) worth of shares changed hands, higher than T$104.64 billion in the previous session. "The TAIEX is very volatile in the unstable global environment and it has lost a big chunk of its gains," said Chiang, who expects the market to trade at 8,100 to 8,600 points this week.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chip maker, fell 3.3 percent, pulling the broader semiconductor subindex 2.3 percent lower. Shares of other major technology exporters lost ground as investors worried that US consumer spending would be lacklustre during the peak holiday season.
Top electronics parts manufacturer Hon Hai Precision Industry, which makes products including Apple's iPods and iPhones, declined 2.5 percent. Sitronix fell 1.7 percent, despite a local report saying Chunghwa Picture Tubes (CPT), Taiwan's No 3 LCD maker, would buy a stake in the company. CPT shares rose 2 percent.
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