Taiwan stocks reversed earlier losses and ended up 1.09 percent on Wednesday to a closing high in about 3-1/2 weeks as steady July sales and a more optimistic second half brought back momentum in technology shares, such as HTC.
The main TAIEX share index rose 71.08 points to 6,573.22, the strongest close since mid-July. The most heavily weighted electronics sub-index rose 1.69 percent. The bank and insurance index dropped 0.17 percent.
Turnover was fairly active at T$88.08 billion ($2.7 billion), higher than Tuesday's T$59.24 billion. Compal Electronics Inc, the world's second-largest contract laptop maker, which makes computers for Dell Inc and Hewlett-Packard Co rose 3.53 percent, ahead of its second-quarter investor conference after the market close.
Flat screen maker AU Optronics Corp rose 0.92 percent after its president said at a company event that shipment and sales will rise sharply in the second half of 2006 compared to the first half.
Shares in Asustek Computer Inc, the world's top computer motherboard maker, advanced 2.02 percent after it announced after markets closed on Tuesday that it would form a joint venture with Gigabyte Technology Co Ltd to strengthen its position in the motherboard market. Gigabyte's stock lost 1.58 percent.
Largan Precision Co Ltd, which makes plastic lens for mobile phones and cameras, rose the daily 7 percent maximum to T$765.00 as analysts said mobile phone component firms were riding on rising demand growth in handheld devices.
Chi Mei Optoelectronics climbed 0.64 percent even after Morgan Stanley analysts raised the rating of the flat-screen maker, saying that the firm would see a profitable fourth quarter as demand rises in the liquid crystal display sector.
United Microelectronics Corp rose 1.38 percent after the company announced July sales figures, which were up 30.3 percent from the same period a year ago.
Taiwan Semiconductor Manufacturing Co, the world's largest contract chip maker, gained 0.54 percent. TSMC is due to announce July sales results on Thursday.
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