Taiwan stocks fell 1.56 percent to a more than two-month closing low on Thursday as concern over government discussions on a possible tax on stock profits compounded worries over the global economy that sent other regional bourses lower. The main TAIEX index shed 121.03 points to 7,639.82, marking its lowest close since early February and extending its slump to 5 percent in five sessions.
At one point in Thursday's session it was down 3 percent. Among the worst hit, automobiles and banks both were down over 2 percent. Electronics sank 1.06 percent. A couple of bright spots were flat panel makers Chimei Innolux and AU Optronics, rising 2.2 percent and 4.7 percent, respectively. The Taiwan dollar weakened by T$0.012 to trade at T$29.492. Foreign investors were net buyers on Tuesday, bringing their total buying to T$3.5 billion this month. The market was closed for a public holiday on Wednesday.