Taiwan shares slide 1.12% after bruising session for tech stocks

Taipei, June 8 (CNA) Shares in Taiwan dropped 188.79 points, or 1.12 percent, to close at 16,733.69 Thursday after a bruising session for tech stocks, with turnover reaching NT$303.01 billion (US$9.85 billion).

Dragged down by tech shares following a lackluster showing for the U.S. markets overnight, the Taiex, the Taiwan Stock Exchange's weighted index, lost momentum to close below the five-day moving average of 16,764.

Despite Taiwan Semiconductor Manufacturing Co.'s American depositary receipts closing above US$100 at US$100.29, shares of the contract chipmaker dropped 1.58 percent to NT$559.

Smartphone IC designer MediaTek Inc. remained unchanged, finishing at NT$768, while Yageo Corp., the world's third-largest multilayer ceramic capacitor supplier, dipped 1.98 percent to NT$494.

Meanwhile, manufacturing giant Hon Hai Precision Industry Co. edged down 0.93 percent to NT$107.

Shipping and tourism stocks managed to finish in positive territory, rising 1.17 percent and 0.44 percent, respectively.

Auto and biotech stocks performed the worst, falling over 2 percent, respectively.

Most investors have taken a wait-and-see attitude amid rumors the U.S. Federal Reserve will halt a rate hike cycle after a shock interest rate hike by Canada's central bank.

According to analysts, many investors are waiting for the results of a meeting of the Federal Open Market Committee from June 13-14.

After the market digested some of the selling pressure after several sessions of gains, future moves by foreign institutional investors will be the key to the Taiex gathering momentum and breaching the 17,000-point market in the short term, analysts said.