Taiwan: Stocks fall after rate cut; banks down

[TAIPEI] Taiwan stocks fell on Friday after the central bank cut interest rate for the second time this year to shore up growth in the island's trade-reliant economy that has been hit by faltering global demand.

Financial shares led declines amid concern the cut would erode their earnings. CTBC Financial Holding Co Ltd fell 2.1 per cent, while Mega Financial Holding Co Ltd dropped 1.6 per cent.

As of 1:03 GMT, the main TAIEX index was down 0.9 per cent at 8,246.27, after closing 1.65 per cent higher at 8,319.67 in the previous session.

The electronics subindex sank 0.9 per cent, while the financials subindex fell 1.6 per cent.

The Taiwan dollar firmed by T$0.133 to trade at T$32.902 per US dollar.

REUTERS