Taiwan: Stocks pare early gains ahead of new govt, economy worries

[TAIPEI] Taiwan stocks were flat on Tuesday as early gains on the rise in overseas markets gave way to uncertain outlook for the trade-reliant economy and ahead of the swearing in of new president at the end of this week.

The main TAIEX index was nearly unchanged at 8,065.32 as of 0138 GMT, after closing up 0.2 per cent in the previous session. The index has fallen every trading session except two this month, reaching closing lows last week not seen in more than three months.

The electronics subindex rose 0.3 per cent, but the financials subindex was unchanged.

Taiwan's president-elect Tsai Ing-wen, who won a landslide victory in January elections, will be sworn on Friday. Her inauguration speech is being widely watched as China continues to pressure the new government to stick to the principle that Beijing says Taiwan is a part of China.

China is the island's largest trading partner and the concern is if Beijing is not satisfied with Tsai's speech, economic ties will continue to sour.

On Friday, Taiwan is due to issue its latest export orders data, which has already slid for 12 straight months.

The Taiwan dollar firmed T$0.04 to T$32.665 per US dollar.

REUTERS