Taipei shares sharply lower in early trade on Wall St slide, elections' approach

Share prices were sharply lower in early trade in line with Wall Street's slide Friday after weaker-than-expected US jobs data heightened worries over the US economy.

Investors were also cautious in the run-up to Taiwan's parliamentary elections on Saturday.

Technology stocks were under pressure after JP Morgan downgraded Intel Corp, the world's largest chip maker, to "neutral" from "overweight", citing concerns over slowing orders and high inventory levels.

At 9.35 am, the weighted index was down 212.73 points or 2.59 pct at 8,008.37, off a low of 7,954.05, on turnover of 37.50 bln twd.

"The New York weakness dragged down the local bourse," said an analyst with a domestic investment consulting firm.

"The main uncertainty is whether the US economy will face slowing growth or a recession."

Decliners outnumbered advancers 1,632 to 176, with 229 stocks unchanged.

Six stocks were limit-up, while 52 were limit-down.

The electronics sector was down 4.48 pct and financials lost 1.14 pct.

The steel sector was up 0.83 pct and textiles rose 0.70 pct.

Taiwan Semiconductor Manufacturing Co shed 2.30 twd or 3.83 pct to 57.70 and United Microelectronics lost 0.50 twd or 2.61 pct to 18.65, tracking declines in their American depositary shares on Friday.

Among other stocks in focus, MediaTek was limit-down 25.50 twd or 7 pct at 341.50, Hon Hai Precision Industry shed 9.50 twd or 5.19 pct to 173.50 and High Tech Computer tumbled 32.00 twd or 6.02 pct to 500.00.

(1 usd = 32.40 twd)