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Taiwan stocks closed 0.7 percent lower on Friday, with AU Optronics sliding 6.05 percent after it reported a quarterly loss and other tech firms losing ground after poor outlooks from US firms Motorola and Qualcomm. The main TAIEX share index ended down 54.14 points at 7,640.44, after gaining 1.78 percent in the previous session.

Turnover was flat at T$117.2 billion ($3.7 billion) compared with Thursday's T$118.1 billion. AU Optronics made a net loss of T$7.9 billion in October-December, due to a one-off provision due to a lawsuit, better than the record net loss of T$26.6 billion a year earlier but worse than the third quarter's T$7.4 billion profit.

However, analysts say the outlook for LCD makers is still positive in the long term. "In the first quarter, LCD makers have a better outlook than other tech rivals on rising TV demand from China," Andrew Deng, an assistant vice president with Taiwan International Securities Corp.

South Korea's Samsung Electronics also expressed confidence in the outlook for flat TV demand, particularly from China. Poor outlooks from Qualcomm Inc and Motorola (see and) helped drag down Taiwan's electronics sub-index 0.75 percent. The world's No 2 cellphone chip maker Mediatek Inc dropped 0.57 percent.

HTC Corp, the world's No 4 smartphone brand, fell 3.37 percent, extending its slide for three sessions, after making a profit margin forecast below expectations due to intensifying competition. Bucking the trend was TSMC, the world's largest contract chip maker, which jumped 2.5 percent after it posted its biggest quarterly profit in two years on Thursday. Other winners included department store shares. Shin Shin Co jumped 0.62 percent and Far Eastern Department Stores Ltd climbed 0.33 percent.

Tourism shares also rose. First Hotel advanced 2.3 percent and Formosa International Hotels Corp gained 0.97 percent. "Department store and tourism shares outperformed other shares as the Chinese New Year is approaching, during which families will take trips or go shopping," said Deng. Suppliers to Apple's new iPad weakened, with components maker Hon Hai Precision slipping 1.1 percent and panel maker Wintek falling 6.39 percent even after Apple released the new device.

Copyright Reuters, 2010


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