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Taiwan shares close lower following U.S. China tariff plan

2018/03/23 18:09:10

Taipei, March 23 (CNA) Shares in Taiwan closed lower on Friday after the market opened down following news that the U.S. plans to impose tariffs on US$60 billion worth of Chinese imports, which sent markets into a slump worldwide.

The weighted index on the Taiwan Stock Exchange (Taiex), closed down 182.51 points, or 1.66 percent, at 10,823.33. Turnover totaled NT$145.52 billion (US$4.99 billion).

The bourse opened at the day's high of 10,863.67 and moved to a low of 10,758.06 before rebounding.

The sectors most rattled by news of the tariffs, which could be as high as 25 percent, are the aerospace, information/communication technology, and machinery industries.

As a result, stock in those categories fell heaviest, including the electronics sector by 2.22 percent, the optoelectronics sector by 3.31 percent, and the semiconductor sector by 2.40 percent.

Most traditional industry stocks fell by less than 1 percent.

Kevin Lin (林成蔭), vice president of the investment consultancy firm Caizischool Co., said that while a trade war between the U.S. and China will impact Taiwan's stock market, it is unlikely to cause record fluctuations in the market immediately.

Shares are likely to move between 10,850 and 10,739, given that about half of Taiwan's stocks are in electronics, Lin said.

However, Lin also believes that the trade war between the U.S. and China is unlikely to escalate further as the U.S. will engage in talks with China to resolve matters.

(By Wei Shu and Kuan-lin Liu)
Enditem/AW