Taiwan's stocks fell after the number of jobs in the US unexpectedly dropped for the first time in four years and Japan's economy shrank.
Hon Hai Precision Industry Co (
"The US job market is deteriorating, meaning a decline in consumer demand will follow, hurting corporate earnings worldwide," said Tracy Chen, who helps manage US$2.3 billion at PCA Securities Investment Trust Co in Taipei.
"Japan isn't providing any relief," she said.
The TAIEX index slipped 80.50, or 0.9 percent, to close at 8,937.58 in Taipei, its biggest fall since Aug. 29.
Shares rebounded from an early low of 8,845.90 on government support and as some companies posted strong August revenues.
Hon Hai, Taiwan's biggest exporter of electronics, dropped NT$2.50 (US$0.08), or 1.1 percent, to NT$236. Taiwan Semiconductor Manufacturing Co (台積電), the world's biggest supplier of made-to-order chips, fell NT$0.8 or 1.3 percent, to NT$61.20.
US payrolls unexpectedly de-clined by 4,000 jobs last month, compared with a 100,000 gain expected by economists in a Bloomberg survey. Japan's economy contracted at a 1.2 percent annual pace in the last quarter, more than the 0.7 percent forecast by economists surveyed by Bloomberg News. The US and Japan are Taiwan's biggest export markets after China, accounting for about a fifth of overseas sales in July.
AU Optronics Corp (友達光電), which supplies LCD panels to clients such as Sony Corp, dropped NT$1.35, or 2.7 percent, to NT$49.15. High Tech Computer Corp (宏達電), the world's biggest maker by volume of handsets based on Microsoft's Windows operating system, fell NT$13.50, or 2.9 percent, to NT$457.50. High Tech supplies handsets to clients including NTT DoCoMo Inc.
Elsewhere, China Steel Corp (中鋼), Taiwan's largest steelmaker, slipped NT$0.95, or 2.2 percent, to NT$42.95.
James Clarke, an analyst at Deutsche Bank AG, has cut his recommendation for the company to "hold" from "buy," citing a bigger than forecast rise in raw material prices that will increase costs.
Compal Electronics Inc (仁寶), the world's second-largest maker of notebook computers, rose NT$0.45, or 1.2 percent, to NT$37.10. Compal plans to sell 3.42 million shares in Himax Technologies Inc (奇景光電).
The sale may be valued at US$15.4 million based on Compal's planned minimum asking price of US$4.50 per share, the company said.
Taiwan shares fell Monday on weak volume as investors look ahead to a decision on interest rates by the US Federal Reserve.
Investors will remain cautious until the US Fed meets to discuss interest rates on Tuesday, said Derek Lam of Fubon Securities.
"Volume is low so people are not selling," he said.
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