Taiwan stocks at over 2-mth closing low on tax woes

TAIPEI, April 5 (Reuters) - Taiwan stocks fell 1.56 percent
to a more than two-month closing low on Thursday as concern over
government discussions on a possible tax on stock profits
compounded worries over the global economy that sent other
regional bourses lower.
The main TAIEX index shed 121.03 points to
7,639.82, marking its lowest close since early February and
extending its slump to 5 percent in five sessions. At one point
in Thursday's session it was down 3 percent.
The finance ministry will hold meetings Thursday and Friday

of its tax reform team to discuss whether to levy a capital
gains tax.
Among the worst hit, automobiles and banks
both were down over 2 percent. Electronics sank 1.06
percent.
A couple of bright spots were flat panel makers Chimei
Innolux and AU Optronics, rising 2.2 percent
and 4.7 percent, respectively.
Chimei, the world's No.3 LCD panel maker, will formally sign
on Thursday an agreement with banks extending loan repayments, a
source with direct knowledge of the matter said, offering some
breathing space to the loss-making company as it struggles with
weak demand and falling prices for LCD panels.
AU will start mass production of panels using AMOLED
technology for Sony in the second quarter, local media
reported.
The Taiwan dollar weakened by T$0.012 to trade at
T$29.492.
Foreign investors were net buyers on Tuesday, bringing their
total buying to T$3.5 billion this month. The
market was closed for a public holiday on Wednesday.

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(Reporting by Faith Hung)