Taiwan stocks rise; techs and steel outperform

Taiwan stocks rose 0.71 percent on Monday, edging further away from a three-month low as Wall Street's gains fuelled buying in tech exporters like TSMC even after recent heavy selling by foreign investors.
The main TAIEX share index ended 45.23 points higher at 6,421.85. Taiwan Semiconductor Manufacturing Co (TSMC), the world's top contract chip maker and the market's most heavily weighted stock, jumped 0.84 percent, lifting the electronics sub-index 0.98 percent.
Besides techs, small-cap steel issues were major winners, extending Friday gains fuelled by hopes of strong demand this year.
Topping the list of most active trade issues by volume, China Steel Corp surged 3.39 percent.
"Outside Taiwan, it looks like the US stock markets remained stable and local fund managers bought stocks to boost performance before their books close for the first quarter," said Kevin Lin, a fund manager at Shinkong Investment Trust.
But total turnover was soft at T$65.0 billion ($1.99 billion), down from T$76.86 billion in the previous session.
"It was just a rebound after gains on Wall Street," said Alan Tseng, vice president at Capital Securities. "I wont' expect too much before the end of April because of caution over corporate first-quarter results."
The TAIEX had weakened since early January as investors left the market after the year-end buying boom ended. Corporate sales and profits usually dwindle in the first few months of the year.
United Microelectronics Corp (UMC), the world's number-two contract maker of microchips, was another bright spot, rising 2.11 percent. Microchip designer VIA Technologies Inc gained 2.59 percent, taking heart from a 0.98 percent advance on the US Philadelphia semiconductor index on Friday.
Investors also searched for bargains in high-priced growth stocks. Smartphone maker High Tech Computer Corp, the market's most actively traded issue by turnover, shot up 5.66 percent and Mediatek Inc, the world's top provider of DVD chips, was up 0.84 percent. Solar cell maker Motech Industries Inc recouped early losses to end up 0.14 percent. Foreign institutions said they saw no imminent impact on Motech from newcomer Semiconductor Manufacturing International Corp (SMIC), China's top contract maker of microchips, the Commercial Times reported.
Electronics components maker Hon Hai Precision Industry Co edged up 1.34 percent on a report that the firm could be among major beneficiaries from a move by France's Alcatel to set up a test centre for a new-generation wireless WiMAX network in Taiwan.