Taiwan share prices closed 2.54 percent lower yesterday, extending Monday's losses as investors remained on the sidelines over lingering concerns about the U.S. economy, dealers said.
The weighted index closed down 217.96 points at 8,370.00 - the lowest since March 20 - on turnover of NT$117.21 billion (US$3.87 billion).
Decliners led risers 2,192 to 272, with 255 unchanged.
A total of 40 stocks closed limit-down and six were limit-up.
Electronics stocks were down 2.40 percent and financials 3.08 percent lower.
The tourism sector dropped 5.45 percent despite upcoming talks between Taiwan and China on launching weekend charter flights and bringing in more mainland tourists to the island.
Construction was also among the worst performing sectors on profit-taking, down 4.80 percent.
"Concerns over a possible recession in the U.S. continue to overshadow the U.S. and international markets," said Johnny Lee, an analyst at President Securities.
Political uncertainty in South Korea following mass protests over planned resumption of U.S. beef imports also affected Asian bourses, Lee added.
Dealers expected the market to fall further to 8300 in the next session and even 8000 by the end of the week.
High Tech Computer shed NT$57 to NT$765 as investors worried about sales of HTC's Diamond phone after rival Apple revealed a new 3G Apple iPhone with aggressive price cuts.
Taiwan Semiconductor Manufacturing Co lost NT$1.40 to NT$63.90 and United Microelectronics Corp shed NT$0.25 to NT$17.85. Formosa International Hotels was down NT$46.00 to NT$684, Shining Building Business was down NT$5.30 to NT$86.