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Taiwan: Stocks near two-month low; banks drag

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[TAIPEI] Taiwan stocks fell to near two-month lows on Wednesday as declines in other regional markets hit sentiment, with banks trading down on reports that the financial regulator has punished seven banks for malpractice.

As of 0511 GMT, the main Taiex index dropped 0.4 per cent, to 8,901.38 points, with the financial subindex down 0.5 per cent. The electronics sub-index dipped 0.3 per cent.

The broader market hit its lowest intraday level in almost two months on Tuesday.

Among the most actively traded, Fubon Financial dipped as much as 0.5 per cent while CTBC Financial lost 1.4 per cent. These two banks were among the seven that were punished by the Financial Supervisory Commission. Their foreign currency derivatives options businesses were tightened amid malpractices related to opening client accounts in their offshore banking units.

The Taiwan dollar eased NT$0.002 to NT$31.708 per US dollar.