Tue, Nov 20, 2007 - Page 11 News List

Stocks fall 1% over fears of a cooling Chinese economy

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Stocks declined 1 percent to close at 8,680.11 yesterday in Taipei on concerns an increase in Chinese interest rates and cooling lending there could slow growth and demand in Taiwan's largest export destination.

"The slowdown in China's economy has been overdue," said Albert King, who manages US$10 million at Prophet Capital Inc in Taipei. "It'll have a direct impact on Taiwan's industrial companies as customers slow procurement."

Nan Ya Plastics Corp (南亞塑膠) and Formosa Petrochemical Corp (台塑) led declines among industrial companies.

Nan Ya Plastics slid NT$5.20, or 5.9 percent, to NT$82.30, the largest slide since July 11.

Formosa Petrochemical fell NT$2.70, or 2.8 percent, to end at NT$92.80.

AU Optronics Corp (AUO, 友達光電), Taiwan's largest maker of flat-panel displays, rose NT$0.50, or 0.8 percent, to NT$63.10, while affiliate Qisda Corp (佳世達) added NT$0.70, or 1.8 percent, to NT$39 after the China Times said on Saturday that chairman Lee Kun-yao (李焜耀) predicted group sales would rise 30 percent next year with all units being profitable.

AUO hasn't made any forecasts for next year's sales, the company said in statement filed to the exchange during trading yesterday.

High Tech Computer Corp (宏達電), the world's largest maker of handsets using Microsoft Corp's Windows operating system, rose NT$6, or 1 percent, to NT$628 after Merrill Lynch & Co added the firm to its Asia-Pacific Focus 1 list of top stocks to buy.

United Microelectronics Corp (聯電) jumped NT$1.30, or by the 6.8 percent exchange-imposed daily limit, to NT$20.50 on speculation it received a buyout offer.

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