Taiwan: Stocks down on return from holiday; chip shares outperform

[TAIPEI] Taiwan stocks fell on Wednesday, but losses were limited following overseas markets and helped by gains in local chip makers.

As of 0214 GMT, the main TAIEX index fell 0.3 per cent, to 8,106.16, after closing up 0.1 per cent on Friday.

Taiwan financial markets were closed Monday and Tuesday due to a holiday and a typhoon.

Last Thursday Taiwan's central bank cut benchmark rates for the first time in six years in a bid to stimulate slowing economic growth.

But share gains may be capped as concerns persist for the local economy, although the coming long national day holiday in China may give investors room to bargain hunt without worrying about financial markets in the mainland.

The electronics subindex was flat, while the financials subindex lost 1.7 per cent.

Shares in TSMC, the world's largest contract chip maker, was up 1.6 per cent.

The Taiwan dollar firmed T$0.342 to T$32.950 per US dollar.

REUTERS