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.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
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