(Adds comment from government, analysts)
* Exports to China down 4.9 pct y/y, to U.S. off 0.3 pct
* Shipments to Europe rose 6.7 pct y/y
* Govt says Nov exports will be roughly flat
By Michael Gold and Faith Hung
TAIPEI, Nov 7 Taiwan's exports fell more than
expected in October, as declines in shipments to China and the
United States kept the island's export machine sputtering,
highlighting erratic global demand.
The Ministry of Finance said on Thursday that Taiwan's
exports last month declined 1.5 percent from a year earlier, a
bigger drop than the 0.68 percent contraction seen in a Reuters
In September, exports were down 7 percent from a year
earlier. And for November, the ministry warned that exports will
be roughly flat.
"Exports just aren't growing," said Tim Condon, Asia
economist at ING in Singapore. "There just is no export growth
South Korea, another pivotal tech exporter, saw exports rise
7.3 percent from a year in October earlier to $50.5 billion.
. But Condon considers that a blip in the overall
picture of Asian trade.
"2013 is going to be the year of basically zero trade growth
in Asia," he said.
In October, Taiwan's exports to mainland China were down 4.9
percent and those to the U.S. were off 0.3 percent, compared to
falls of 8.4 and 8.5 percent, respectively, for Taiwan's biggest
markets the previous month.
Exports to Europe were the only bright spot in October, up
October saw the trade surplus widen to $3.52 billion from
September's $2.35 billion, as imports in the month dropped 2.8
'HUGE' DROP FOR PRECISION PRODUCTS
The Finance Ministry said the October contraction was
primarily because of a "huge decline" in exports of precision
products, down 25 percent from one year earlier.
Taiwan's manufacturing industry is a key player in the
global supply chain for chips and consumer electronics. Major
companies have reported mixed results for the third quarter.
TSMC, the world's largest contract chipmaker,
posted record profits though smartphone maker HTC
booked its first-ever quarterly loss and computer vendor Acer
Inc. said it would cut 7 percent of its workforce
following a worse-than-expected loss.
Taiwan export orders, which typically lead actual exports by
two to three months, in September rose by 2 percent from a year
earlier, beating expectations of being flat. Orders from the
U.S. jumped 7 percent but those from China declining 6.1
Orders from Europe, which have shown signs of modest
recovery in recent months, lodged a 15.6 percent gain. Export
orders typically lead actual exports by two to three months.
Rick Lo, senior economist at Fubon Financial Holdings in
Taiwan, said the continued weakness of the island's exports
"demonstrates that the structure of our industry has a problem."
Noting the growth in South Korea's exports in October, and
upturns in the U.S. and Europe, he said "it really looks our
economy lacks competitiveness."
(Additional reporting by Lin Miao-jung; Editing by Richard