Taiwan's main stocks fell to an 11-month low after Advanced Micro Devices Inc said third-quarter sales missed its forecast as demand failed to improve and chip inventory piled up. United Microelectronics Corp (UMC, 聯電), one of its suppliers, slumped.
TAIEX fell 95.78, or 2.3 percent, to 4,075.98, its lowest level since Nov. 2. More than 11 stocks fell for every two that rose. The total value of trade was NT$38.17 billion, the second-lowest this year.
"Slowing growth in the US means weaker demand, fewer orders, and factories operating below capacity, all of which affects sales, especially for the nation's electronics companies," said Gilbert Hsieh, who manages NT$1.6 billion (US$46 million) in stocks at Grand Cathay Securities Investment Trust Co (
Hsieh said he is buying stocks of companies such as carmakers that generate most of their sales from China, whose economy is growing faster than the US and Europe.
UMC fell 6.6 percent to NT$21.3, a one-year low. Rival Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) fell NT$2.3, or 5.8 percent, to NT$37.70, its lowest since March 11, 1999.
RSS