Taiwan stocks rose 0.31 percent on Monday to a nearly 17-month closing high, but Asustek led some technology shares lower after it announced a plan to reduce its holding in a subsidiary to ease conflicts of interest. The main TAIEX share index jumped 24.06 to 7,819.13, its highest closing since June 25, 2008, extending a 1.53 percent gain in the previous session.
Turnover shrank to T$127.4 billion ($4 billion) from T$134.8 on Friday. Netbook PC pioneer Asustek dropped 7 percent after it said it would reduce its holding in fully owned contract manufacturing subsidiary Pegatron Holdings, which would be listed next year.
"Pegatron is not a listed company, so investors are worried that the financial report will not be transparent enough," said Kevin Chung, an analyst with Jih Sun Investment Consulting Co Contract chip maker UMC fell 0.31 percent. Quanta, the world's largest contract laptop PC maker, rose 0.6 percent after a local newspaper reported that the company received new orders from Hewlett-Packard.
Smaller rival Compal Electronics fell 1.35 percent. HTC Corp rose 0.58 percent after a local newspaper reported that it would make Google's Nexus One smartphone. Transportation issues were another bright spot on hopes of further co-operation between Taiwan and China with both sides expecting to sign a free trade pact next year, said Tom Tang, a vice-president with Masterlink Investment Advisory.
Evergreen Marine rose 0.3 percent and China Airlines rose 3.83 percent, pushing the broader transportation sub-index up 1.22 percent. Taiwan and China will hold a fourth round of formal talks next week, laying the foundation for the final stages of the economic co-operation framework agreement early in 2010.
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