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Taiwan shares weaken ahead of U.S. job report

Taiwan shares weaken ahead of U.S. job report

Taipei, Sept. 4 (CNA) Shares in Taiwan closed down more than 1 percent Friday on thin trading as investors appeared anxious, waiting for the release of the official U.S. job report later in the day, which could give more clues about how the Federal Reserve will adjust its monetary policy, dealers said. Selling was concentrated on the bellwether electronics sector, led by "Apple concept stocks" amid concerns over sales of the next generation iPhone, while Taiwan Semiconductor Manufacturing Co. (TSMC,???), the most heavily weighted stock in the local market, also faced pressure to send the index even lower, they said. The weighted index on the Taiwan Stock Exchange closed down 95.35 points, or 1.17 percent, at 8,000.60, after moving between 7,990.86 and 8,128.23, on turnover of NT$82.29 billion (US$2.52 billion). The market opened down 0.21 percent in the wake of a mixed Wall Street overnight, but staged a mild rebound to the day's high before selling reemerged in the mid-morning session and escalated into the end of the session with high-tech stocks in focus, dealers said. "Like other regional markets, the Taipei market remained haunted by fears over a possible interest rate hike by the Fed," Hua Nan Securities analyst Kevin Su, referring the losses suffered by markets, such as Tokyo and Seoul. "The upcoming U.S. non-farm payroll report for August will be critical to the Fed's likely monetary policy adjustments. Sentiment appeared especially cautious today since the U.S. central bank has scheduled a policymaking meeting later this month," Su said. "Wary of uncertainty over the global markets with fears that Wall Street will remain volatile later in the day after the release of the job report, investors here tended to pocket their gains built in the past few sessions, and liquid electronics stocks simply fell victim to the latest selling," Su said. The electronics sub-index closed down 1.47 percent with TSMC, the world's largest contract chip maker, down 1.57 percent to end at NT$125.00 with 22.03 million shares changing hands. Apple concept stocks, led by smartphone camera lens supplier Largan Precision Co. (???), which closed down 5.76 percent amid fears that the next generation iPhone sales will stay little changed or even slightly lower than the iPhone 6 and iPhone 6S, the current models. The new iPhones are expected to debut on Sept. 9. Among other falling Apple suppliers, metal casing maker Catcher Technology Co. (??) shed 5.05 percent to close at NT$310.00, and Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads, lost 1.07 percent to end at NT$83.00. Selling also spread to old economy stocks, in particular in the textile sector which had posted significant gains in the past few sessions. The textile sub-index closed down 2.04 percent, and among the losing textile stocks, Eclat Textile Co. (??) fell 4.60 percent to end at NT$498.00, and Makalot Industrial Co.(??) closed down 3.80 percent at NT$278.50. "Judging from the selling, I suspect that foreign institutional investors stood on the sell side," Su said. According to the TWSE, foreign institutional investors sold a net NT$3.76 billion worth of shares on the main board.
(By Frances Huang)


Updated : 2021-09-22 08:38 GMT+08:00