Taiwan: Stocks up tracking overseas markets, rate decision awaited

[TAIPEI] Taiwan stocks rose on Thursday, buoyed by gains in overseas markets, but all eyes were on the central bank's quarterly policy meeting later in the session, at which it is widely expected to cut interest rates.

Most economists polled by Reuters expect a fourth consecutive rate cut, bringing the discount rate to fresh six-year lows, as the central bank tries to shore up flagging growth. The decision will come after the market close.

As of 0116 GMT, the main Taiex index was up 0.1 per cent at 8,597.86 points, after closing up one per cent in the previous session.

The electronics subindex rose 0.2 per cent, while the financials subindex gained 0.1 per cent.

Shares in Formosa Plastics Corp was up 0.4 per cent.

The Taiwanese conglomerate, which majority owns a steel plant in Vietnam, has been suspected by Vietnamese media and the public of discharging toxic waste from a drainage pipe from the plant causing mass fish deaths, even though local authorities found no link to Formosa in preliminary studies.

The Vietnamese government is scheduled to hold a news conference later on Thursday to announce its findings.

The Taiwan dollar firmed T$0.059 to T$32.284 per US dollar.

REUTERS