Taiwan shares end down amid worries over tariff impact on job market

Taipei, Aug. 19 (CNA) Shares in Taiwan closed lower Tuesday amid worries over the impact of American tariffs on the job market after machine tool maker Taiwan Takisawa Technology Co. urged its employees to take three days off a week due to a fall in orders, dealers said.

The old economy sector came under heavy pressure throughout the session because it faces 20 percent tariffs on goods shipped to the United States, while Japanese and South Korean competitors face 15 percent tariffs, dealers said.

The Taiex, the Taiwan Stock Exchange's weighted index, ended down 129.02 points, or 0.53 percent, at 24,353.50 after moving between 24,324.29 and 24,551.42. Turnover totaled NT$462.85 billion (US$15.38 billion).

"The Takisawa report delivered a shock to investors as it is a listed old economy company," Mega International Investment Services analyst Alex Huang said.

"Investors feared the impact will affect more Taiwanese machinery makers given the higher tariff burden faced by Taiwan's manufacturers plus a stronger Taiwan dollar," Huang said.

"That's why the old economy sector led the Taiex lower today, with investors rushing to lock in their gains built yesterday, when the index closed at a new high."

On the over-the-counter market, Takisawa shares fell 10 percent, the maximum daily decline, to close at NT$47.00.

The selling spread to its machine tool counterparts on the Taiwan Stock Exchange, with Hiwin Technologies Corp. down 3.20 percent to end at NT$211.50 and Chieftek Precision Co. down 2.62 percent to close at NT$89.20.

Elsewhere in the old economy sector, Eclat Textile Co. lost 2.17 percent to close at NT$406.00, and rival Makalot Industrial Co. fell 1.88 percent to end at NT$261.50.

In addition, Formosa Plastics Corp. dropped 2.97 percent to close at NT$39.20, and Nan Ya Plastics Crop. shed 8.86 percent to end at NT$42.15.

"The bright side was that select technology giants stayed resilient, preventing the Taiex from falling further. TSMC (Taiwan Semiconductor Manufacturing Co.) just served as an anchor," Huang said.

Contract chipmaker TSMC, the most heavily weighted stock here, rose 0.42 percent to close at NT$1,185.00, and United Microelectronics Corp., a smaller contract chipmaker, gained 1.61 percent to end at NT$41.05.

Bucking the upturn, smartphone IC designer MediaTek Inc. fell 1.01 percent to close at NT$1,390.00, and iPhone assembler and AI maker Hon Hai Precision Industry Co. ended down 0.95 percent at NT$208.00.

Huang said some printed circuit board stocks fell back from their recent strong gains, with Zhen Ding Technology Holding Ltd. down 2.65 percent to close at NT$65.50, and Unimicron Technology Corp. down 2.11 percent to end at NT$139.00.

In the financial sector, which lost 0.51 percent, Fubon Financial Holding Co. fell 1.01 percent to close at NT$88.10 and Cathay Financial Holding Co. ended down 0.31 percent at NT$64.20.

"Today, the Taiex fell below the nearest technical support of 24,360 points, the five-day moving average, so investors should see whether the index will return to that level in coming sessions or if more losses are possible," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$11.01 billion in shares on the market Tuesday.