Taiwan stocks at 1-week low; Acer, BenQ, AU slide

(Adds hot stocks, details)

By Faith Hung

TAIPEI, March 28 (Reuters) - Taiwan shares ended down 0.73 percent at a one-week low on Wednesday, as Acer (2353.TW) paced a slide in technology stocks after bigger rival Hewlett-Packard (HPQ.N) said it had sued the Taiwan computer maker for patent infringement.

The main TAIEX share index fell 57.03 points to 7,788.14, a level not seen since March 21.

The heavily weighted electronics sub-index .TELI fell 1.03 percent and the financial sub-index .TFNI dropped 0.76 percent.

"Some investors were worried the suit would cast shadows on the outlook" for Acer, the world's No. 4 PC vendor, said George Hsieh, who manages T$8.5 billion (US$258 million) for Capital Investment Trust.

Trading reached T$104.4 billion (US$3.16 billion), easing from T$127.0 billion in the previous session.

The fund manager expected the main index to trade in a narrow range next week, due to concerns over a slowing U.S. economy.

"We have not seen rallies in U.S. stocks lately, capping the possibility for any big gains in Taiwan shares. Besides, heavy technical pressure (for Taiwan shares) is mounting near the 7,900 level," Hsieh said.

Acer shares finished 0.47 percent lower after HP on Tuesday filed the lawsuit against the company. (Click [nN27231990] for details)

Acer told Reuters in an interview on Tuesday that it aimed to surpass Lenovo (0992.HK) this year to grab the No. 3 ranking.

(For story details, click [nTP144068])

HOT STOCKS

-- AU Optronics Corp. (2409.TW) (AUO.N), the world's No. 3 flat display panel maker, fell 2.84 percent. BenQ Corp. (2352.TW) slid 3.38 percent after the mobile phone vendor said it would sell 100 million shares it owns in AU to help bring it back to profitability. (Click [nTP170654] for story details)

-- Fubon Financial (2881.TW), Taiwan's No. 5 financial holding firm, erased early gains and closed 0.85 percent lower.