Taiwan: Stocks led up by TSMC, but early gains slip ahead of rate meeting

[TAIPEI] Taiwan shares were higher on Thursday led by TSMC announcing its third quarter revenue would be better than expected and on bargain-hunting after sharp losses in the previous session.

But the gains were being eroded ahead of the quarterly policy meeting of Taiwan's central bank board, where rates may be cut for the first time in six years to help bolster slowing economic growth.

As of 0159 GMT, the main TAIEX index had risen 0.2 per cent, to 8,207.70 points, after closing down 2.1 per cent in the previous session.

TSMC shares were ahead 2 per cent after it offered guidance that third quarter revenue would be increased by foreign exchange gains, but TMC said it expected fourth quarter revenue to fall from third quarter levels.

A severe decline in August industrial output hit Taiwan, which posted its sharpest on-year fall in 2.5 years.

Added to a run of weak export-related activity data, the industrial decline pointed to the fourth quarter holiday demand not being as strong as hoped.

Taiwan's rate decision will come after 0800 GMT. A slight majority of economists polled by Reuters expect a cut to the benchmark discount rate.

The electronics subindex rose 0.4 per cent, while the financials subindex lost 0.1 per cent.

The Taiwan dollar firmed TW$0.355 to TW$32.895 per US dollar.

REUTERS