Taiwan tech stocks looking to recover

TAIPEI, Taiwan (CNN) -- One month after the terror attacks in the U.S., Asian stocks are lower across the board, with Taiwan's export-oriented tech firms suffering the most.

Taiwan tops a Reuters list of Asia's 10 biggest stock losers over the month ending October 10.

The number-one loser was Taiwan microchip maker Winbond, which saw a 40.3 percent drop from its September 10 stock price of NT$15.40.

But recovery may be in store. Taiwan stocks closed nearly five percent higher on Thursday, led by a rally in electronics shares.

Winbond was up 6.6 percent to NT$10.50, rebounding from a low of NT$9.25 on Monday.

"The Nasdaq rally boosted sentiment, but most important, the Taiwan market has fallen too far compared with other markets since the September 11 attacks, thus giving room for a major rebound," said Lei Pei-yu, portfolio manager of Pacific Securities' proprietary trading.

Nine-year low

Already suffering from the U.S. economic slump in the first half of the year, demand for tech products has plummeted in the past month.

As of Thursday's close, the benchmark TAIEX index, which hit a nine-year low last week, had lost 9.3 percent since the hijack attacks, more than most global stock markets.

According to Reuters, the second top stock loser in Asia was Taiwan's AU Optronics, the world's second largest maker of flat computer screens. Shares in AU Optronics fell 37.76 percent.

After Philippines Long Distance and Indonesia's Bank Negara, Taiwan's United Microelectronics Corp. (UMC) emerged as the number-five top loser in the list with a 32.41 percent drop in its share price.

The percentage change is based on the difference between the September 10 and October 10 closing prices. Where markets were closed on October 10, the previous closing date was used.

But on Thursday, Taiwan tech stocks were given a reprieve after an overnight rally on the Nasdaq. Taiwan's dominant electronics sub-index jumped 5.96 percent.

Analysts expect the rally to continue, but also say profit-taking may emerge when the Taiex index nears 4,000.

Reuters contributed to this report.