Taiwan stocks little higher

Taiwan shares ended slightly higher on Monday, with index heavyweight TSMC and selected financial stocks higher, after the world's major central banks put billions of dollars into banking systems to ease a widening credit squeeze.
The main TAIEX share index gained 0.09 percent, or 7.65 points, to close at 8,938.96. The electronics subindex was down 0.21 percent while the banking and insurance subindex was 0.32 percent higher.
Shares worth T$145.5 billion (US $4.4 billion) changed hands, lower than T$166.5 billion in the previous session. "Most people are still closely monitoring US market movements, and pressure from the credit crisis still exists as domestic investment trusts have decreased some of their investments," said Masterlink Investment Advisory manager Chiang Cheng-sheng.
Major central banks injected about $150 billion in overnight funds on Thursday and Friday to alleviate the money market squeeze. On Friday, the Dow Jones industrial average and the Nasdaq composite index finished well off their session lows after the Federal Reserve injected cash to shore up the banking system and ease anxieties over looming losses related to subprime mortgages.
Taiwan Semiconductor Manufacturing Co, the world's top contract chip maker, rose 0.81 percent and was the second-most active stock by turnover. The firm had posted a rise in July sales on Friday.
Electronics gear maker Hon Hai Precision Industry Co gained 1.12 percent after announcing record sales figures for July. However, shares in smartphone maker High Tech Computer (HTC) declined 1.39 percent, weighing down the electronics subindex.
On the financial front, Cathay Financial Holding, parent of Taiwan's top life insurer, rose 0.9 percent, recovering from a steep fall in the previous session as banking shares edged up.
But Chinatrust Financial, Taiwan's largest bank in the wealth management business, fell 0.63 percent. The benchmark index rebounded from Friday, when it dropped 2.74 percent, its largest percentage decline since a 4.26 percent fall on August 1.
The index has slipped about 7 percent since hitting a seven-year closing high on July 24. Michael On, managing director at Beyond Asset Management expected the market to trade between 8,900 and 9,200 points this week.
Industry analysts expect demand for touch panels to increase by 19 percent year-on-year as they gain popularity after the launch of Apple's iPhone, with component makers such as Taiwan's Wintek Corp set for rising profits this year and next, the Commercial Times said. Wintek gained 0.96 percent to T$42.20.