Taiwan: Stocks fall; caution on economy remains

[TAIPEI] Taiwan stocks fell on Friday on weakness in global markets and continued caution about the weak domestic economy after the island's central bank cut rates.

Taiwan's central bank cut its policy rate for the third straight time on Thursday to prop up its faltering economy but said it expected growth to gradually pick up quarter by quarter.

The main TAIEX index fell 0.4 per cent to 8,707.79 as of 0302 GMT, after closing down 0.3 per cent in the previous session.

The electronics subindex sank 0.5 per cent, while the financials subindex was down 0.2 per cent.

Shares in Hon Hai were off 0.6 per cent.

Japan's Sharp said its annual earnings were likely to fall short of its own guidance due to a slowing China market, a factor that Hon Hai, which goes by the trade name Foxconn, is expected to use to lower its offer for the loss-making Japanese display maker as the two sides continue to hammer out a deal.

The Taiwan dollar firmed TW$0.113 to TW$32.613 per US dollar.

REUTERS