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Bloomberg: Taiwan's Stocks Tumble as SARS Spreads; TSMC, Quanta Decline

By George Hsu

Taipei, April 24 (Bloomberg) -- Taiwan's stocks tumbled, sending the TWSE Index to its biggest drop in almost nine months, on concern the spread of a deadly disease will hurt economic growth. Taiwan Semiconductor Manufacturing Co. paced the slide.

Taiwan reported nine probable cases of severe acute respiratory syndrome yesterday, the largest single-day increase, bringing the total on the island to 38. At least 105 people have died from SARS in Hong Kong and 1,458 people have been infected in the city, according to the World Health Organization.

``The latest sharp increase in SARS cases crashed investor confidence as they fear the situation in Taiwan will worsen to the same degree as Hong Kong,'' said Phil Chen, who manages Grand Cathay Securities Investment Trust Co.'s $46 million High-Tech Fund. ``SARS will devastate greater China region's economy because companies in the U.S. and Europe have not just canceled trips, but other business activities in this region, even some orders.''

The TWSE shed 187.69, or 4.1 percent, to 4377.24 as of 11:38 a.m. in Taipei. That's the index's largest drop since Aug. 5. MSCI Taiwan futures for April delivery in Singapore fell 4.8 percent to 186.80, while the Taiwan Futures Index shed 4.7 percent to 4357. Only 14 of 610 stocks on the Taiwan Stock Exchange gained.

Taiwan Semiconductor dropped NT$1.3, or 2.7 percent, to NT$47.00.

Exporters such as Quanta Computer Inc. and Hon Hai Precision Industry Co. also fell after the government said export orders increased at a slower pace in March.