Taiwan stocks fell 0.33 percent on Wednesday as index heavyweights like UMC came under pressure from losses on Wall Street, while investors waited for more signs of recovery in the technology sector.
The main TAIEX share index ended down 20.38 points at 6,148.70 with soft turnover of T$53.45 billion ($1.63 billion). Investors had also retreated to the sidelines to see whether index compiler FTSE would upgrade Taiwan and South Korea's market status later on Wednesday, analysts said.
"Basically we don't have very high hopes for the upgrade. If people were betting on the FTSE upgrade, the market should have risen," said Alvin Teng, assistant research manager at SinoPac Securities.
Shares in United Microelectronics Corp (UMC), the world's number-two contract chip maker, fell 0.96 percent to T$20.60, pulling the electronics sub-index 0.52 percent lower. The financial sector edged up 0.19 percent. Local suppliers to Nokia also lost ground even after the world's top mobile phone maker raised its third-quarter sales and profit forecasts on Tuesday.
Hon Hai Precision Industry Co, which assembles phones for Nokia, fell 1.27 percent to T$155.5.
Selling of Taiwan Business Bank shares continued, with the price dropping 1.92 percent to T$10.20. The stock has fallen steadily since Friday, when the state-run bank cancelled a board meeting to discuss a share sale.
Taiwan electronics companies typically ramp up production to meet growing demand from US computer vendors in the run up to the year-end holiday, but some analysts say high oil prices might curb corporate tech spending around the world this year. If buying interest among US consumers weakens, Taiwan companies would be hurt.
Mitac International, which produces computers and portable global positioning systems (GPSs) for drivers, rose 3.27 percent to T$45.75.
But Wistron Corp, the island's third-largest maker of laptop computers, gave up earlier gains, inspired by hopes of rising shipments this year. The stock fell 0.86 percent to end at T$34.70.
The over-the-counter market's TAISDAQ index fell 0.90 percent to 120.16 and September TAIEX index futures dropped 0.15 pc to 6,155.