Taiwan stocks fall on lingering tax woes; HTC down

TAIPEI, May 30: Taiwan stocks fell 1.1 percent on Wednesday, paced by smartphone maker HTC, as investors continued to fret about the government’s planned capital gains tax bill.
The main TAIEX index retreated 80.49 points to 7,261.80, weighed down by plastics and banking, down 3.48 percent and 1.57 percent, respectively.
HTC ended 1.85 percent lower, giving up gains of over 2 percent earlier in the session. It said on Wednesday its latest smartphones have passed a U.S. Customs review, clearing the way for it to ramp up sales in the United States as it looks to turn around a decline in what was once its largest market.
Overall sentiment was hit by news that the government was still working on the tax bill, after a revision to it the previous day that favours investors more than the earlier proposal had sparked a 2.89 percent jump in the market.
The Taiwan dollar weakened slightly to stand at T$29.703.
Foreign investors were net sellers on Tuesday, bringing their total selling to T$101 billion this month.