Taiwan stocks fell to a six-month low on Wednesday as disappointing forecasts from Intel Corp and a weaker Taiwan dollar dragged down technology shares. The TAIEX share index fell 2.34 percent to close at 5,694.16 points, a level not seen since Apr. 21.
The electronics sub-index slumped 2.77 percent. Chi Mei Optoelectronics Corp and Nanya Technology Corp were among the worst performers, with both falling the daily limit of 7 percent.
"Intel's forecast triggered an across-the-board decline in Asia including Taiwan," said Abraham Tung, an analyst with Ta Ching Securities.
"The sharp fall in Taiwan stocks today took a big hit on market sentiment. We don't think there'll be any major rally coming for at least a few weeks."
Investor confidence has been weak, with some foreign investors selling Taiwan shares to stem foreign exchange losses from the weak Taiwan dollar.
In the past five trading days, foreign investors sold a net T$22.87 billion of Taiwan shares, outpacing net selling in the whole month of September, according to Barits International Securities Co Ltd.
Individual investors, which make up about 60 to 70 percent of Taiwan stock market trading, also stayed on the sidelines.
Margin trading decreased by T$3 billion on Monday to T$214.9 billion, representing an 18 percent slide from January 30, according to Barits.
Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, was the most actively traded stock and fell 1.88 percent to T$49.55. Rival United Microelectronics Corp fell 4.03 percent to T$19.05.
The banking and insurance sub-index, second only to techs in weighting, also fell 2.58 percent as delays in mergers and consolidation discouraged investors.