Taiwan share prices closed 1.3 percent lower yesterday on the back of profits in non-electronics sectors, as fund mangers continued year-end window-dressing, dealers said.

They said turnover was thin, with many investors staying on the sidelines for the year-end holidays.

The weighted index closed down 60.07 points at 4,484.43, off a high of 4,561.42 and a low of 4,482.65, on turnover of NT$53.05 billion (US$1.5 billion).

Dealers said electronics stocks failed to sustain their recovery in the absence of a solid improvement in their fundamentals.

"Investors prefer to remain sidelined when the market is short on fresh leads," Fubon Securities Investment Service Manager Norman Lee said.

"Non-electronics lost more ground on profit-taking but the electronics sector failed to sustain rebound amid concerns over the prospects of Wall Street," he said.

Nikkei Lowers in Christmas Trade

Japanese share prices closed slightly lower yesterday in quiet Christmas Day trade pressured by profit-taking, along with mounting concerns about Iraq and the Democratic People's Republic of Korea, dealers said.

The Nikkei-225 average of the Tokyo Stock Exchange slipped 11.23 points or 0.1 percent to end at 8,501.14. The broader Topix index of all first section issues was down 2.81 points at 827.00.

Decliners led gainers 718 to 594, with 179 unchanged. Volume was estimated at a slim 530 million shares.

Akira Nakamura, head of equity trading at Chuo Securities, said individual investors engaged in some profit-taking, but there were few participants because many other markets were closed for Christmas.

"Pension and hedge funds are the only investors buying Japanese stocks," he said.

Koichi Seki, market analyst also at Chuo Securities, said the improvement in supply and demand conditions offered some support.

(Edited from China Daily December 26, 2002)