Shares finished lower yesterday on concerns that China might adopt more drastic measures to cool its booming economy.
The TAIEX finished 22.57 points, or 0.4 percent, lower at 5774.67 in dealings valued at NT$61.47 billion (US$1.8 billion).
The drop came after figures showed China's gross domestic product expanded at a faster than expected pace in the third quarter. China reported Friday 9.1 percent on-year growth in its third-quarter GDP, beating expectations for an 8.9 percent gain.
"China's strong 3Q GDP shows that government measures to cool its economy aren't working. They may have to do more to curb growth," said Alan Tseng (曾炎裕), a vice president at Capital Securities Corp (群益證券).
He said steel and China-related issues fell on the GDP data.
China Steel Corp (中鋼), one of the region's largest steel makers, fell 1.1 percent to NT$33.3, smaller rival Chung Hung Steel Corp (中鴻) plunged 6.6 percent to NT$18.30 and Yieh Hsing Corp (燁興) fell 6.8 percent to NT$9.60.
A number of other large Taiwanese firms that supply materials or building products to China fell.
Formosa Plastics Corp (台塑) dropped 1 percent to NT$51, and Formosa Chemical & Fibre Corp (台灣化纖) fell 2.6 percent to NT$56.
Strong gains in US markets overnight helped sentiment among technology issues, but many investors chose not to chase share prices too much higher.
United Microelectronics Corp (聯電) shares ended the day up 1.5 percent at NT$20.30 and Taiwan Semiconductor Manufacturing Co (
RSS