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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 end down; Acer falls on weak sales
Reuters - 1 hour 24 minutes ago
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* Acer hits two-week closing low after weak sales report
* TSMC flat after record monthly sales, new investments
* Transport stocks give up early gains
TAIPEI, Aug 11 - Taiwan stocks fell 1.02 percent on Wednesday, with PC vendor Acer Inc <2353.TW> tumbling after it reported a fall in July sales and leading other electronics companies lower on concern over demand.
Worries over the U.S. economy after the Federal Reserve took steps to counter a weakening recovery in one of Taiwan's top export markets also took a toll on sentiment [ID:nN09275781]
"The impact of the Fed announcement is one aspect of Wednesday's fall. It could herald slower demand for Taiwan electronics and a poorer outlook," said John Chiu, a vice president at Fuh Hwa Securities Investment Trust. "There are also companies such as Acer posting weak sales. The business outlook for electronics companies is poorer for Q3."
The main TAIEX share index <.TWII> ended down 81.71 points at 7,895.03. Acer shares fell more than 5 percent in early trade before closing 4.1 percent lower after the company reported a 38 percent year-on-year fall in sales in July. [ID:nTPV001845]
The electronics sub-index <.TELI> fell 0.88 percent and the electronics components sub-index <.TEPI> was down 1.18 percent.
Top contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd <2330.TW> ended flat as investors have largely priced in its good July sales [ID:nTOE67806W] and have begun to worry about slower demand late this year.
Concerns linger over a supply glut in the chip foundry market, but TSMC's board approved on Tuesday new investments for expansion in its core chip business and other energy-related sectors. [ID:nTPV001846]
Banking shares ran into profit-taking, with the sub-index <.TFNI> down 2.45 percent.
Investors also pocketed quick profits from transport shares <.TTPI>, which gave up early gains to fall 0.48 percent.
"It is reasonable to see some profit-taking after recent rises. Transport shares should still be worthwhile investments in the longer term if you see their improving fundamentals," said Kevin Chung, manager at Jih Sun Investment Consulting.
Wan Hai Lines Ltd <2615.TW> defied weakness, up 2.3 percent after it reported strong July revenue on higher prices for freight.
Chung said the TAIEX could be trapped between 7,800-8,000 points this week.
Foreign investors turned net sellers of Taiwan stocks on Tuesday, shedding about T$2.2 billion-worth. For the month to date however they remained net buyers of about T$28.4 billion. (Reporting by Jonathan Standing and Baker Li; Editing by Chris Lewis)
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