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By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
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Taiwan stocks post worst fall in 6 wks; TSMC gains
Reuters - 1 hour 11 minutes ago
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* Chimei slips on Q3 business outlook
* Shipping stocks rally on China hopes
* TSMC up before July sales
TAIPEI, Aug 10 - Taiwan stocks fell 0.72 percent in their worst one-day percentage slide in six weeks on Tuesday, amid concern that tech exporters including Chimei Innolux <3481.TW> are facing slowing demand.
Chimei Innolux, the world's No.3 LCD panel maker, was the most actively traded stock by volume, shedding 3.5 percent.
TSMC <2330.TW>, the world's top contract chip maker, rose 0.5 percent. Shortly after the market close, it posted stronger July sales. [ID:nTPV001843]
"Many institutional investors are switching to traditional plays from tech stocks, in part because the tech sector will be heading to slower demand in the European and U.S. markets in Q3," said Chang Chi-sheng, a fund manager at Uni-President Asset Management.
The main TAIEX share index <.TWII> ended 57.75 points lower at 7,976.74, retreating from a near four-month closing high in the prior session. Electronics shares <.TELI> sank 1 percent.
The broader market is expected to trade at 7,600-8,200 points this month, Chang said.
Chimei posted solid quarterly results, but investors were worried demand would slow in the second half of the year as China's tightening policy could hurt sales of PCs. For more on Chimei, click [ID:nTOE67106M]
Bucking the overall slide, shipping shares <.TTPI> rose 2.5 percent on hopes of improving trade ties across the Taiwan strait.
Taiwan sealed a landmark free trade pact with China in June, slashing tariffs on the island's exports and giving a boost to the economy. [ID:nECFA]
China Airlines <2610.TW>, Taiwan's biggest carrier, was up 2 percent, and Yang Ming Marine <2609.TW> was 4.4 percent higher.
"Shipping stocks would be able to extend their rally as the economies of Asia and China continue to pick up faster than their Western peers," said John Chiu, a fund manager at Fuh Hwa Securities Investment Trust.
UMC <2303.TW>, the world's No.2 contract chip maker, and the world's two biggest contract laptop PC makers, Quanta <2382.TW> and Compal <2324.TW>, all fell after posting July sales figures. [ID:nTPV001837] [ID:nTPV001835] [ID:nTPV001837]
Acer <2353.TW>, the world's No.3 PC brand, was off 0.11 percent.
Acer said that its sales of PC and other information technology products in the third quarter would rise 10-15 percent from the second quarter. The firm also said it had no plan currently to raise its stake in Italian computer maker Olidata <OLI.MI> [ID:nTPV001840] [ID:nTPV001842]
Tatung <2371.TW>, parent of LCD maker Chunghwa Picture Tubes <2475.TW>, sank 3.8 percent.
Regulators turned down Tatung's application to cut its capital by T$32 billion, boding ill for its plan to raise money via a private placement or get bank loans, local media reported.
Foreign investors were net buyers of shares worth T$5 billion on Monday, expanding their net purchases to T$30.5 billion in August. [ID:nTOE65305E]
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