Taiwan stocks fell 2.86 percent to post their lowest close in more than two weeks on Tuesday, weighed down by struggling DRAM firms, as poor November jobless data renewed investor concerns about the health of the economy. The main TAIEX share index closed down 129.68 points at 4,405.86, its lowest since December 5, extending its slide to over 6 percent in two sessions.
The heavily-weighted electronics sub-index was off 3 percent and the financial sub-index shed 2.46 percent. Shares worth T$51.2 billion ($1.56 billion) changed hands - a two-week low - compared with T$67.2 billion a day ago. "Every piece of news, including the jobless data, has been negative, and there would be few exceptions as we head into the first quarter," said Katty Wang, a fund manager of Prudential Financial.
"No rally is in sight in the near term," said Wang, whose firm manages about T$100 billion of client assets in Taiwan. Tourism stocks fell as investors ignored news that a pair of giant pandas from China, a goodwill gift from Beijing and the latest sign of improving ties between the two political rivals, would arrive in Taiwan later in the day.
Formosa Regent, a major hotel chain operator, ended 7 percent limit-down and Leofoo Development shed 5.3 percent. All DRAM makers, including Powerchip, ProMOS and Nanya Technology, fell by the 7 percent limit.
Powerchip said on Tuesday it had applied for government assistance and had widened the degree of its output cut to 20-25 percent from 15 percent previously amid the sector's worst downturn. Loss-making ProMOS also said recently it had applied for state aid. Taiwan's seasonally adjusted jobless rate rose 4.62 percent in November, the government said on Monday, as companies laid off workers in response to a slowing global economy.