Taiwan stocks rose 3 percent on Friday to a four-month closing high on a strong rise in global markets, with AU jumping after a report the LCD makers capacity utilisation rate could increase by the second quarter. The tourism sub-index jumped 6.3 percent after Chinas Premier Wen Jiabao said he wanted to visit Taiwan.
Shares of AU Optronics, Taiwans top flat panel maker, jumped by their 7 percent daily limit after a local newspaper reported the firms capacity utilisation rate could rise to over 90 percent by the second quarter on a slew of rush orders. AUs smaller rival Chi Mei rose 3.7 percent and the electronics sub-index added 2.9 percent.
"Chinas home electronics subsidies will be a long-term boost for LCD shares. Besides, its a growing industry. I think LCD stocks have a great chance to keep rising," said Alex Huang, a vice president of Mega International Securities. The main TAIEX share index finished up 142.7 points at 4,897.4, its highest close since November 5.
Turnover rose to a seven-month high of T$125.0 billion ($3.6 billion), up from Thursdays T$84.4 billion. Shares of ProMOS lost 6.2 percent, while larger rival Nanya Tech gained 2.9 percent. Shares of Powerchip, Taiwans top DRAM maker, rose 5.1 percent after it said it was not expecting significant government help for local DRAM makers, and was in talks with Japans Elpida on a possible merger or other tie-up.
Smartphone maker HTC ended limit-up after a newspaper said the firm would likely launch its new product "HTC Maple" next month. The tourism sub-index rose 6.3 percent, buoyed by China Premier Wen Jiabaos comment on Friday. Shares of hotel operators Ambassador Hotel and Leofoo Development Co both surged by their daily 7 percent limit.
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