Taiwan Market to Limit Share Drops

Shares plunged on the Taiwan Stock Exchange in Taipei early today, driven by fears that last week’s killer earthquake would rock the economy and take a toll on corporate profits. Blue chips tumbled 2.7% in the first few minutes of trading. The government had sought to contain panic selling, announcing temporary measures late Sunday placing emergency limits on how far shares can fall in a single session during the next two weeks. Finance Minister Paul Chiu said shares would be allowed to fall no more than 3.5% a day--half the usual daily limit--to “ensure that market order can be sustained.” The market had been closed since Tuesday, when a 7.6-magnitude earthquake killed more than 2,000 people and damaged the island’s export-based economy. Analysts predict that Taiwan’s 1999 economic growth will fall to around 5.5%, versus forecasts of 5.7%.