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15:01 08Jul09 RTRS-Taiwan stocks end lower, tech shares slide * Export-reliant tech shares down on demand fears * Weaker Taiwan dollar sends asset shares lower * Evergreen Marine drops on shipping industry woes (Add details and quotes) TAIPEI, July 8 (Reuters) - Taiwan stocks fell 0.7 percent on Wednesday, their worst daily percentage drop in one week, with export-reliant tech shares such as TSMC <2330.tw> sinking on worries over slowing demand from China and the United States. The main TAIEX share index <.TWII> closed 47.08 points lower at 6,668.14. Softer turnover of T$116 billion ($3.5 billion) showed that investors fretted the local market could pull back further following months of rallies. "Taiwan stocks tracked losses in both the U.S. and China stock markets today, with export-reliant technology shares being hit the hardest," said Kevin Chung, an analyst at Jih Sun Investment Consulting Co. The stock market will be trapped in a tight range between 6,500-6,700 points in the short term, as foreign investors are reluctant to trade because of a volatile local dollar, Chung said. Shares of TSMC, the world's top contract chip maker, dropped 1.81 percent, dragging the broader semiconductor sub-index <.TSII> down 0.31 percent, while its smaller rival United Microelectronics Corp, (UMC) <2303.tw> rose 4.48 percent. TSMC and UMC, which together take up about two-thirds of the global chip foundry market, sell the bulk of their products to clients in the United States. The two companies are set to report June sales later this week. Quanta <2382.tw>, the world's largest contract laptop PC maker, dropped 0.85 percent, pulling the broader computer and peripherals sub-index <.TCPI> 0.49 percent lower. The optoelectronics sector <.TOPI> rose 0.67 percent, outperforming the broader electronics sub-index <.TELI>, which edged down 0.13 percent, and the main board. AU Optronics <2409.tw> rose 0.88 percent on news that Taiwan's government would soon launch a programme that encourages the use of electronic reading devices, or e-books, which require a new generation of flexible displays. Asset-related shares dropped on a weaker Taiwan dollar, with Taiwan Fertilizer <1722.tw> dropping 0.93 percent. The banking and insurance sub-index <.TFNI> fell 1.12 percent, with China Development Financial <2883.tw> falling more than 2 percent after it sold its 20 percent stake in the Taipei 101 skyscraper to Ting Hsin International Group. Taiwan's Evergreen Marine <2603.tw>, the world's fourth-largest container line, fell 3.37 percent after it said on Wednesday that it would dismantle a sixth of its fleet over the next four years as it sees no clear signs of an economic recovery [ID:nTP97297]. Analysts said Taiwan's shipping industry was facing severe challenges because of the global financial crisis, but increasing imports of manufacturing equipment pointed to a slow yet firm turnaround. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.7 percent Close on day 6,668.14 2006 intraday high 6,797.20 2006 intraday low 6,373.63 All time high 12,682.41 12 FEB 1990 --------------------------------------------------------------- For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358] ((Reporting by Joan Hsu; Editing by Jonathan Hopfner)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS] OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU] DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary [WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts TOP NEWS: For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks <0#.index> Currency rates Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225> FTSE 100 <.FTSE> Debt <0#usbmk=> Taiwan dollar LME price overview TAIWAN MARKET: Taiwan equity mkt TAIEX <.TWII><.TV.TW> Other indices <0#.inx.tw> TAISDAQ <.TWOII><.TV.TWO> TAIMEX Taiwan index futures <0#tx:> MSCI Taiwan index <.MSTW> SIMEX Taiwan index futures <0#stw:> FTSE TW50 index <.FTSETW50> Keywords: MARKETS TAIWAN STOCKS/CLOSE
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