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Taiwan: Stocks fall on Brexit uncertainty; China Airlines down after strike ends

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[TAIPEI] Taiwan stocks fell on Monday on continued nervousness over how Britain's vote to leave the EU, or Brexit, would play out for global demand.

The trade-reliant economy has remained weak and the added uncertainty of Brexit's impact on global markets and how it trickles down to end demand is where the concerns for Taiwan are focused.

Brexit's immediate impact on the local bourse however should be limited as the island's trade and financial exposure to the UK is relatively small, said Yuanta Investment Consulting in a research note.

Brexit also pretty much sets Taiwan on course for its fourth rate cut since September when the island's central bank policymakers meet on Thursday.

As of 0130 GMT, the main Taiex index was down 0.6 per cent at 8,426.47, after closing 2.3 per cent lower on Friday its second worst single-session loss in 2016.

The electronics subindex sank 0.5 per cent, while the financials subindex lost 1.6 per cent.

Among actively traded shares, China Airlines, the island's largest airline, was off 1.8 per cent as flight services gradually returned to normal after the end of a brief strike last week.

The strike stranded more than 20,000 passengers and resulted in at least T$160 million in lost revenue, the carrier has estimated.

The Taiwan dollar softened T$0.077 to T$32.579 per US dollar.

REUTERS