Taiwan stocks decline on weak global cues

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Taipei, June 9: : Taiwan stocks fell 1.8 percent on Monday, with major technology exporters such as TSMC dragging down the index on signs of weakness in the key US market.

Taiwan's main TAIEX fell as much as 2.6 percent by midday before closing down 157.39 points at 8,587.96. The Dow marked its worst day in 15 months on Friday due to record oil prices and a rising US jobless rate in May.

The exchange's turnover fell to T$81.91 billion ($2.7 billion) from T$104.7 billion on Friday.

"We will avoid technology shares in the short term because US stocks will be volatile," said Nigel Lee, a fund manager at National Investment Trust. He pegged the TAIEX at between 8,400-8,700 points in the near term.

Shares of top contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC), which sells the bulk of its chips to North America, shed 4.5 percent, pulling the broader electronics sub-index 2.2 percent lower.

Smaller rival United Microelectronics Corp (UMC) dropped 2.7 percent before it reports May sales later on Monday.

Hon Hai Precision Industry, another major exporter of electronics parts, fell 3 percent, and LCD maker AU Optronics Corp lost 1.8 percent.

"The focus is on the US stock markets now and not just in Taiwan. Investors in other Asian markets are also waiting for more economic data from the United States," said Kevin Chung, manager at Jih Sun Investment Consulting.