As stocks fell for a fourth day, China Steel Corp (中鋼) led declines on concern a deepening US housing slump will dampen the world's biggest economy and prompt investors to shun riskier assets.
"Concerns about the US economy growth spooked investors," said Michael On, who looks after the equivalent of US$100 million as managing director at Beyond Asset Management Co in Taipei. "Slowing US demand will hurt export-dependent countries like Taiwan."
The TAIEX index dropped 89.71, or 1 percent, to close at 9,072.57 in Taipei. The measure slumped 6.9 percent in the past four trading days. About three stocks declined for every two that gained. Futures due next month added 0.1 percent to 8,990.
China Steel, the nation's largest steelmaker, fell NT$1.50 (US$0.046), or 3.5 percent, to NT$41. Cathay Financial Holding Co (國泰金控), the nation's largest financial holding company, slipped NT$4.30, or 5.1 percent, to NT$80.80.
Hon Hai Precision Industry Co (鴻海精密), which supplies iPod to Apple Inc, dropped NT$1.50, or 0.6 percent, to NT$262.
US residential investment declined at 9.3 percent annual rate in the second quarter, after contracting by 16 percent in the previous three months, commerce officials said on Friday. Consumer spending slowed to 1.3 percent annual pace, from 3.7 percent in the first quarter.
US stocks dropped on Friday after Cadbury Schweppes Plc became the first company to delay an acquisition because of "extreme volatility" in debt markets. Banks have failed to sell at least US$32 billion in takeover-related debt to investors on concern that losses from subprime mortgages and leveraged buyouts are widening.
Elsewhere, High Tech Computer Corp (宏達電), the world's biggest maker by volume of handsets based on Microsoft Corp's Windows operating system, climbed NT$17, or 2.8 percent, to NT$620.
Joey Cheng, an analyst at Goldman, Sachs & Co, raised his share-price estimate for High Tech to NT$790 from NT$760. Cheng kept his recommendation for the stock at "neutral."
Asustek Computer Inc (華碩電腦), the nation's largest maker of boards that connect components in personal computers, dropped NT$0.30, or 0.3 percent, to NT$92.70. The company denied a report yesterday by the Chinese-language Commercial Times saying it was planning to raise salaries by more than 30 percent. Asustek did not have plans to raise pay and increase performance bonuses by 30 percent, the company said in a statement.
Innolux Display Corp (群創光電), the world's second-largest maker of flat-screen computer monitors, declined NT$6, or 4.1 percent, to NT$139. Innolux plans to start building an NT$60 billion ($1.83 billion) liquid-crystal display factory in January in Taiwan, a spokesman said by telephone.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
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