Taiwan stocks fall on China objection; Hon Hai down

* Weak global markets, China objection weigh on stocks

* Hon Hai drops to 9-mth low on China wage rise

* Compal slips despite lifting 2010 shipments target

* Foreign investors continue net selling

(Updates comments, hot stocks)

TAIPEI, June 2 (Reuters) - Taiwan stocks fell 1.28 percent on Wednesday, weighed down by weak overseas markets and China's opposition to foreign countries signing free trade pacts with Taiwan.

Hon Hai Precision (2317.TW), maker of iPhones and other electronic products, slumped 4 percent to T$119.50, a nine-month low, after saying production line workers at its Foxconn (2038.HK) unit's southern China manufacturing hub will get a 30 percent pay rise. [ID:nTOE65100X]

On the China trade issue, Taiwan protested on Wednesday after a mainland foreign ministry spokesman said Beijing "resolutely opposed" official contact between its diplomatic allies and Taiwan. [ID:nTOE65102N]

"That raises uncertainty Taiwan and China will ink the ECFA in June, which has been widely expected," said Andrew Deng, an assistant vice president at Taiwan International Securities.

Taiwan has said it plans to sign the economic cooperation framework agreement (ECFA) with Beijing in June, in a move that could help cut tariffs for many local manufacturers that operate in China.

"In the near future, Taiwan stocks are most likely to trend lower, hurt by the euro zone deficit crisis, the slides on Wall Street and the extending falls of China stocks," he said.

The main TAIEX share index .TWII ended down 93.62 points at 7,195.71. The electronics sub-index .TELI shed 1.5 percent.

Contract PC maker Compal Electronics (2324.TW) slid 0.5 percent despite saying late on Tuesday that it had raised its 2010 notebook PC shipment target to 48-50 million units from a previous forecast of 48 million.

Foreign investors sold a net T$127 billion ($3.97 billion) of Taiwan shares in May, the biggest monthly net selling since November 2007, figures from the Taiwan stock exchange showed. On Tuesday, they sold a net T$6.1 billion. [ID:nTOE64U061]

--------------------TAIEX IN PERSPECTIVE--------------------

Move on day -1.28 pct

Close on day 7,195.71

2010 intraday high 8,395.39

2010 intraday low 7,080.90

All time high 12,682.41 12 FEB 1990 ------------------------------------------------------------ ($1=T$32.3) (Reporting by Faith Hung; Editing by Ken Wills)