Taiwan stocks ended up 1.49 percent at a three-month high on Monday, as gains on Wall Street fanned optimism of solid growth for technology heavyweights such as Hon Hai Precision Industry Co.
The main TAIEX rose to 6,750.78, a level not seen since June 2. Among the biggest winners, the electronics sub-index jumped 1.86 percent and the construction sub-index shot up 4.03 percent. "No more interest rate hikes for a while and oil prices are falling. Both are good news that prompt investors to buy shares," said David Dong, who manages T$2.2 billion (US $64 million) for Uni-President Asset Management.
"Companies that make flat panels, handsets, memory chips and PC-related products will continue to outperform in the market, thanks to growing demand ahead of the Christmas shopping season."
Dong said he had raised his holding to 90 percent from 80 percent a month ago, mostly in high-priced tech shares. Hon Hai, Taiwan's top electronics components maker, closed up 4.97 percent at a record high. The company has dropped its libel claim against two Shanghai journalists and its mobile phone arm posted strong earnings.
AU Optronics Corp, the world's number-three flat panel maker, rose 2.18 percent. Asustek Computer Inc, the world's top maker of computer motherboards, climbed 1.17 percent. Citigroup upgraded its rating on Asustek to "hold" from "sell."
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