Taiwan: Stocks fall, financials down on yield concerns

[TAIPEI] Taiwan stocks were slightly down on Friday, bucking the trend in Asian shares due to selling in financial shares.

Trading was cautious as some analysts said the recent rise in bond yields abroad could erode overseas investments by domestic financial institutions.

The main TAIEX index was lower 0.3 per cent at 9,581.79 as of 0219 GMT, after closing down 1.2 per cent on Thursday.

Earlier this week, the Taiwan government sold 30-year government bonds at a yield of 2.438 per cent, above a Reuters poll for a yield of between 2.35 per cent and 2.39 per cent, due in part to higher overseas fixed income yields.

The financial subindex was down 0.5 per cent, while the electronics subindex was lower 0.1 per cent.

CTBC Financial dropped 0.2 per cent, while China Development Financial fell 1.7 per cent.

The Taiwan dollar was up T$0.164 at T$30.517 to the U.S. dollar.

REUTERS