Taiwan stocks ended 1.78 percent lower on Monday, with technology stocks such as Hon Hai down amid increasing fears that a US recession would hurt demand for their products. The main TAIEX share index lost 149.89 points to close at 8,262.87, after hitting a two-month high last week. Major Wall Street indexes lost 2.5 percent or more on Friday.
Shares worth T$134.71 billion ($4.3 billion) changed hands, lower than T$166.73 billion in the previous session. Top electronics parts maker Hon Hai Precision, a supplier to top US brands such as Apple and other big computer sellers, dropped 4.79 percent, pulling the broader electronics sub-index 3.21 percent lower.
Top contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC), one of foreign investors' favourite stock, shed 1.46 percent. "Taiwan shouldn't be hurt that much from the sell-off, and since foreign investors have been bullish on the domestic market before elections, it should see support," said Chiang Chen-sheng, manager at Masterlink Investment Advisory. Despite the day's fall, Chiang expects the index to rise to 8,600 points.
Taiwan's presidential elections will be held on March 22. Cathay Financial, the ost active stock by turnover, slid 2.62 percent, dragging the bank and insurance sub-index down 1.87 percent.
Shares of contract PC maker Wistron slumped 6.09 percent after local media reported it could join hands with LCD maker Chi Mei Optoelectronics to invest in Vietnam. The computer and peripherals index was down 3.23 percent. Chi Mei shares dropped 4.06 percent.
Uni-President gained 2.08 percent after the local Commercial Times reported that the firm, through units including its Uni-President China, is investing $50 million for nearly 4 percent of Want Want's China unit as Want prepares for an IPO.
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