Taiwan's Stocks Slide Most in 11 Weeks: World's Biggest Mover

Taiwan's stocks dropped the most in 11 weeks, extending losses in global markets on concern overseas sales will cool as a U.S. housing recession crimps demand in the world's biggest economy.

Hon Hai Precision Industry Co. led exporters lower after U.S. consumer spending rose less than economists forecast and manufacturing slowed more than estimated.

``The outlook for the U.S. economy remains gloomy,'' said Yu Reming, who helps manage $1.3 billion at Entrust Investment Trust Corp. in Taipei. ``Export-oriented companies will suffer.''

The Taiex index slid 325.14, or 3.4 percent, to close at 9,273.09 in Taipei. That's the biggest decline since Aug. 16 and the largest fluctuation among markets included in global benchmarks. About seven stocks dropped for every one that gained. Futures due in November plunged 4.4 percent to 9,230.

U.S. stocks tumbled yesterday, sending the Standard & Poor's 500 Index 2.6 percent lower. Citigroup Inc., the biggest U.S. bank by assets, slid the most since 2002 after CIBC World Markets analyst Meredith Whitney cut her rating on the stock and said the lender may have to cut its dividend.

Hon Hai, the world's largest contract electronics manufacturer, dropped NT$14, or 5.9 percent, to NT$225. Taiwan Semiconductor Manufacturing Co., the world's biggest supplier of made-to-order chips, fell NT$2.60, or 4.1 percent, to NT$61.60. U.S. buyers account for about three-quarters of the chipmaker's sales.

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