Taiwan: Stocks fall sharply following rout in Chinese shares, yuan

[TAIPEI] Taiwan stocks fell sharply on Thursday extending early losses after Chinese shares fell sharply triggering a trading halt on the key mainland bourse and as the Chinese central bank set a sharply weaker daily guidance rate for the yuan.

As of 0213 GMT, the main TAIEX index fell 1.9 per cent, to 7,835.52 points, after closing down 1.1 per cent in the previous session to a low not seen in over four months.

The electronics subindex sank 2.0 per cent, while the financials subindex lost 2.0 per cent.

Apple Inc suppliers were down as the first quarter is traditionally a low business season and on talk that the U.S. tech giant's popular iPhones may not see strong demand.

Assemblers of the iPhones, Hon Hai was off nearly 2 per cent, while Pegatron was off 3.4 per cent.

The Taiwan dollar firmed T$0.109 to T$33.344 per US dollar. However, the local dollar settled at its weakest level against the US dollar in more than six years on Wednesday.

REUTERS