Taiwan stocks ended 1.18 percent higher on Friday, led by gains in shares such as Far Eastern International Bank, on news that part of its holdings would be sold to HSBC. The main TAIEX share index advanced 83.51 points to 7,161.61, while the bank and insurance index rose 1.13 percent.
The last time the main board hit a point this high was on May 15. The technology sector also rose, with shares like Hon Hai propelling the heavyweight electronics sub-index 0.91 percent higher. Turnover was active at T$112.68 billion ($3.44 billion), higher than T$81.33 billion in the previous session.
"Foreign investors bought today in both bank and tech shares and we think some people were over-reacting to the US news on a potential economic slowdown," said Grand Cathay Securities assistant Vice President Kevin Yeh.
On the financial front, Far Eastern International Bank soared the daily 7 percent maximum after a newspaper reported it would sell a 60 percent stake to HSBC Holdings Plc over the next year. The world's largest contract chip maker and a huge exporter to the US, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) reversed losses earlier in the session and rose 0.49 percent.
Smaller rival United Microelectronics Corp (UMC) traded flat. Satellite maker Wistron NeWeb Corp rose 2.29 percent to T$94.00. Goldman Sachs analyst Henry King wrote in a research report that the firm's third-quarter results beat expectations and he saw an even stronger performance in the fourth quarter. King rates the company at "buy" with a 12-month target price of T$110.00. Far Eastern Textile rose 3.51 percent to T$26.55 after Citigroup initiated coverage of the firm and rated the stock at low risk "buy" with a T$30 target price. Citigroup said the firm has valuable land assets in Taiwan and has stable investments in the telecommunications and retail sector.
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