Taiwan's key index had its biggest drop in almost eight months, led by Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電), on concern demand from the US will falter after the jobless rate there rose.
The TAIEX fell for a sixth day in seven, shedding 267.84, or 4.5 percent, to 5642.48. Rising costs in maintaining water supplies at factories, which threaten to eat away at profit margins, also weighed on shares. The government is implementing water rationing measures due to a drought.
Almost seven stocks fell for every one that gained.
"Individual investors may be selling," said Brian Huang, who helps to manage NT$3 billion (US$86.8 million) of Taiwan equities at Truswell Securities Investment Trust Co (富鼎投信). "In Taiwan, psychological factors have a big impact. If stocks have been falling for a couple of days, everybody would sell." Individual investors make up about 85 percent of Taiwan's market. Huang, who may sell computer-related shares, said he expects the index to fall further this week.
TSMC dropped NT$4, or 4.7 percent, to NT$81.
China Motor Co (中華汽車), which sells Mitsubishi Motors Corp cars, gained 90 cents, or 3 percent, to NT$30.8 following government figures released on Friday that shows new car sales in April rose 12 percent from a year earlier, snapping seven months of decline.
Chunghwa Picture Tubes Ltd (中華映管) fell NT$2.3, or 7 percent, to NT$30.8 on concern about rising costs in maintaining water supplies for its plants as the government implements water rationing measures due to a drought.
Evergreen Marine Corp (長榮海運), Taiwan's biggest shipping company, rose NT$1.1, or 6.5 percent, to NT$18 on a newspaper report that earnings will likely increase as freight rates rebound because of more demand.
Hsinchu International Bank (新竹國際銀行) rose 40 cents, or 3.6 percent, to NT$11.6. The lender expects net income to rise 150 percent this year to NT$917.4 million, it said in a statement to the Taiwan stock exchange.
Nanya Technology Corp (南亞科技), Taiwan's biggest memory-chip maker, fell NT$2.4, or 6.8 percent, to NT$32.7 after the spot price of a 128Mb memory chip dropped to US$3.21 from a peak of US$4.48 on March 11.
Taishin Financial Holdings Co (台新金控) rose 40 cents, or 2.1 percent, to NT$19.8 after the stock topped a list of foreign investors' purchases on Friday. The list, a widely watched indicator, showed foreign investors bought 13.4 million more Taishin shares than they sold on Friday after UBS Warburg increased its forecast for the lender's 2002 earnings 17 percent.
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