Taiwan stocks fell as Asustek Computer Inc (華碩電腦) dropped on concern the motherboard maker is cutting prices to boost sales to brand-name companies, squeezing profit margins.
Stocks also fell after the New Taiwan dollar climbed to its strongest against its US counterpart in almost 14 months, eroding the value of overseas sales. Taiwan sells about a fifth of its exports to the US.
The TAIEX fell 75, or 1.4 percent, to 5318.01 as almost four stocks fell for every one that rose. The total value of trade was NT$74 billion (US$2.24 billion).
Asustek fell NT$4.50, or 3.9 percent, to NT$111.50.
The motherboard maker will boost shipments in the second half to Dell Computer Corp and Sony Corp, helping sales rise a fifth from the first six months of the year, a Chinese-language newspaper reported.
"There's momentum for a pickup in the third quarter, but margins will be very low," said Oliver Lee, who manages US$55 million in stocks at Far Eastern Alliance Asset Management Co (遠東大聯投信). "I don't have much confidence in the motherboard makers."
Cathay Financial Holding Co (國泰金控) fell 30 cents, or 0.7 percent, to NT$45.70 after the company said second-quarter profit will be lower than the previous quarter.
Askey Computer Co (亞旭電腦) fell NT$2.60, or 6.4 percent, to NT$38.10 after reports said rival NEC Corp won an order to supply Nippon Telegraph & Telephone Corp
with equipment for 1.4 million asymmetric digital subscriber line modems that boost the speed of data and voice communications.
Advanced Semiconductor Engineering Inc (
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