Taiwan shares rose 0.91 percent to a one-week closing high on Thursday, buoyed by a Wall Street rally, with contract chip maker UMC leading the way after its July sales marked the first annual rise in nine months. The main TAIEX share index jumped 83.14 points to 9,182.60, its highest close since July 31.
Shares worth T$178.4 billion (US $5.42 billion) changed hands, more active than T$143.7 billion in the previous session. "It is a relief that US stocks ended higher for a third straight session yesterday," said John Kuo, who manages T$9 billion for Fuh Hwa Securities Investment Trust.
United Microelectronics Corp (UMC), the world's No 2 contract chip maker, rose 3.27 percent, lifting the electronics subindex by 1.42 percent. Other companies that reported solid July sales also outperformed. LCD maker AU Optronics Corp jumped 2.61 percent and smaller rival Chi Mei Optoelectronics Corp finished up 3.98 percent.
"But today's gains in the Taiwan market will not be sustained unless there is a further rise on Wall Street," said Kuo, who expected selling pressure to emerge at the 9,300 point level. Cosmos Bank, in which General Electric holds a 10 percent stake, ended up 4.4 percent. US-based private equity fund Bain Capital and other investors are interested in bidding for a controlling stake in Cosmos, a source close to the situation said on Thursday.
Shin Kong Financial, parent of Taiwan's No 2 life insurer, rose 2.94 percent. After the market closes on Thursday, the firm is due to brief investors on whether it will book losses from its US subprime mortgage investments and give guidance on the second half of 2007.
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