Taiwan stocks ended down 0.14 percent on Tuesday as overnight losses on Wall Street induced profit taking, but gains in Asustek provided some support after reporting better-than-expected earnings. The main TAIEX share index closed 11.06 points lower at 7,657.34, snapping a two-session winning streak. Turnover was the thinnest in one month at T$96 billion ($3 billion), as caution took hold before more quarterly earnings later this week.
"Positive earnings were within investors' expectations and were not enough to convince them to hold on to their shares." Analysts said the index could trade around its 20-day moving average at 7,600 points this week as investors pocketed gains in technology shares that had carried the main index to a 16-month high in recent weeks. Shares of netbook PC pioneer Asustek, the second most-active stock by volume and turnover, finished 5.04 percent higher at a one-year closing high after the firm reported market-beating third-quarter net profit.
The computer and peripheral sub-index edged up 0.52 percent. Chi Mei Optoelectronics climbed 1.48 percent after the LCD maker posted a forecast-beating profit in the third quarter and offered a bright outlook for demand for flat-screen TVs. AU Optronics, the world's No 3 flat-panel maker, declined 1.28 percent, underperforming the optoelectronics sub-index's 0.21 percent fall.
The main index's fall eased after heavyweight chip designer Mediatek rose. Mediatek ended 0.75 percent higher and topped the session's list of most-active stock by turnover. Mediate reclaimed much of the 11 percent that it lost over the past four days after Citi reiterated its buy rating, and on news that it would work with Cheng Uei to jointly design WiMax chips for use in mobile Internet devices.