Taiwan stocks fall, but Asustek, Chi Mei up on results

* TAIEX track losses on Wall Street, regional peers

* Asustek, Chi Mei rise after better-than-expected Q3 results

* Financials, China plays retreat after recent gains (Adds quotes, details, hot stocks; Updates indexes)

TAIPEI, Oct 27 - Taiwan stocks fell 0.61 percent on Tuesday following overnight losses on Wall Street, but Asustek Computer <2357.TW> and other technology companies that reported forecast-beating results helped cushion losses.

The main TAIEX share index <.TWII> fell 47.15 points to 7,621.25, reversing the previous session's gains.

The computer and peripheral equipment sub-index <.TCPI> was one of the top gainers, rising 0.29 percent, with Asustek up more than 5 percent to a one-year intraday high earlier in the morning.

"Investors were worried that the broader market's upward momentum has begun to diminish, and gains in individual stocks that benefitted from positive results offered limited help to the main index," said Andrew Deng, an assistant vice-president at Taiwan International Securities Corp.

Deng said the index could fall below its 20-day moving average at 7,600 points as investors pocketed gains in technology shares that carried the main index to a 16-month high in recent weeks.

Netbook PC pioneer Asustek said earnings had returned to the black in the third quarter, beating market expectations. [ID:nTP273583]

Chi Mei Optoelectronics <3009.TW> edged up 0.89 percent after the LCD maker posted a forecast-beating profit in the third quarter and offered a bright outlook for demand for flat-screen TVs. [ID:nTP285412]

Financials shares and China plays pulled back after their rally in the previous session, with financial shares <.TFNI> falling 0.58 percent and the plastics sub-index <.TPLI> declining 1.3 percent.

HOT STOCKS

-- Chip designer Mediatek <2454.TW> edged up 0.96 percent after a newspaper reported that it would work with Cheng Uei <2392.TW> to jointly design WiMax chips for use in mobile Internet devices.

-- Hon Hai <2317.TW> fell 1.09 percent. A local newspaper reported that it would work with Sony Corp <6758.T> to enter the mainland China market, and could sell about 2 million Sony-branded TVs and 4 million Sony-branded game consoles in the country by 2010.

For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358]