Taiwan stocks fall, Hon Hai drops on death report

Wed May 26, 2010 10:02pm EDT

Related Topics

* Hon Hai drops on report of 10th death at Foxconn unit

* China Steel falls before announcing product price change

* Cautious market mood seen continuing

TAIPEI, May 27 (Reuters) - Taiwan stocks fell 0.45 percent on Thursday, with electronics parts maker Hon Hai (2317.TW) lower on media reports that a tenth employee at its Foxconn unit's (2038.HK) China facility had died in an apparent suicide this year [ID:nTOE64P08H].

Hon Hai, which has been hit by a series of suspected suicides at Foxconn, slid 1.2 percent and pulled the electronics sub-index .TELI 0.5 percent lower.

The suicides prompted clients Apple (AAPL.O) and Dell DELL.O to say they were investigating suicide reports. [ID:nSGE64P0LH]

At around 0150 GMT, the main TAIEX share index .TWII had fallen 32.51 points to 7,134.84. Turnover was light at T$17.4 billion ($543 million).

"Investor confidence will remain weak in the near term. Recently released U.S. economic data actually topped market expectations, but that was not enough to offset concern over the euro zone crisis," said Albert Hsieh, a fund manager at Shin Kong Financial (2888.TW)'s fund arm.

Chinatrust (2891.TW), Taiwan's top credit card issuer, slipped 0.3 percent. Top financial regulators had hinted to Chinatrust that it should raise money from investors rather than via a private placement, which it is planning, local media reported.

China Steel (2002.TW), Taiwan's biggest steel maker, was down 0.7 percent. The company is expected to raise its July-August domestic prices after the market close on Thursday to reflect higher iron ore prices and stronger demand.

Bigger rival Nippon Steel (5401.T) will hike wholesale steel sheet prices by about 10-15 percent, starting with shipments in July, the Nikkei business daily said on Thursday. [nSGE64P0LH]

Foreign investors resumed their selling of Taiwan shares on Wednesday, expanding total net selling for the month to date to T$118.5 billion, the biggest such monthly figure since June 2008.

For a table on foreign trading in Taiwan stocks, double-click [ID:nTOE64N08P]

($1=T$32.2) (Reporting by Faith Hung; Editing by Ken Wills)

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