Taiwan stocks fall afterexport orders, jobless data

Taiwan stocks fell after the island's June exports dropped for a fourth month and the jobless rate climbed to a record high, highlighting concerns the economy won't recover any time soon.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led declines after its American depositary receipts dropped Friday and a key US semiconductor index fell.

The TWSE Index dropped 68.40, or 1.6 percent, to 4151.93, after rising as much as 1 percent and falling as much as 2 percent. Within the index, 307 stocks fell and 138 rose.

Trade at NT$31.09 billion (US$890 million) was less than half this year's daily average of NT$76.92 billion.

"Sentiment is quite weak," said Steven Hsieh, who manages NT$2.6 billion (US$74 million) in Taiwan stocks at Dresdner Asset Management Taiwan Ltd.

"Most local investors are concerned about earnings forecasts, especially for technology, and political issues."

Export orders fell by a fifth in June to US$11.2 billion from last year, while industrial production slumped 1 percent, the Ministry of Economic Affairs said. The jobless rate rose for a sixth month to 4.6 percent.

The index has dropped 30 percent in three months in US dollar terms, the world's second-worst performing stock market.

These stocks made significant gains or losses.

TSMC fell NT$2.50, or 4.1 percent, to NT$58 after the biggest made-to-order chipmaker's US depositary receipts fell 4.4 percent on Friday.

The Philadelphia Semiconductor Index, a price-weighted index of 16 companies who design, make and sell chips, dropped 2.7 percent on Friday.

Some computer makers dropped after consultants Dataquest Inc said global sales of personal computers dropped 1.9 percent in the second quarter from the year-earlier period to 30.4 million units.

Acer Inc (宏電) fell NT$0.70, or 3.8 percent, to NT$17.80.

Asustek Computer Inc (華碩電腦), which makes motherboards and notebook computers, fell NT$1.50, or 1.1 percent, to NT$139.50.

Compal Electronics Inc (仁寶電腦) fell NT$0.20, or 0.6 percent, to NT$33.80. Mitac International Corp (神達電腦) fell NT$0.30, or 2.2 percent, to NT$13.50.

Chunghwa Telecom Co Ltd (中華電信) rose NT$2.30, or 5.6 percent, to NT$43.20 as investors bet the stock's 57 percent decline since the company went public last year already reflects expectations sales will decline this year.

The stock's relative strength index, derived by averaging out daily gains and losses over a set period of time, fell to 27.31 on Friday, indicating the stock will rise.

A relative strength value of 30 or below indicates a stock is poised to rise.