Taiwan stocks drop 2 pct on Libya woes

Taiwan stocks slumped 2 per cent on Tuesday,tracking falls in regional bourses,as increasing violence in Libya sent oil prices higher.

Taiwan stocks slumped 2 per cent on Tuesday,tracking falls in regional bourses,as increasing violence in Libya sent oil prices higher and raised concerns of growing inflation.

Investors were worried that the violence in Libya would accelerate inflationary pressures,already seen as a major obstacle to the growth of emerging economies this year.

The Libya violence has further cast a shadow on the outlook for emerging economies,said Chu Yen-min,a senior vice president of KGI Securities,adding there was further downside for Taiwan stocks throughout this week.

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At around 0140 GMT,the main TAIEX share index had dropped 177.39 points to 8,661.83,extending the decline at the opening bell.

Banking stocks and tech shares shed 2.4 per cent and 1.9 per cent,respectively.

Smartphone maker HTC was the most actively traded issue by turnover,losing 1 per cent.

But renewable energy makers gained amid hopes higher oil prices would trigger demand.

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Green Energy and Solartech Energy both rose nearly 4 per cent.

Foreign investors were net sellers of Taiwan stocks on Monday,boosting their net selling to T$65.8 billion so far this month.