Taiwan stocks rose 2.48 percent on Friday, their highest finish in more than three weeks, as chip bellwether TSMC led technology shares higher on hopes for the US economic rescue package. The main TAIEX share index ended 108.00 points higher at 4,471.25, its strongest close since January 14, recovering from a 0.61 percent fall in the previous session.
Turnover was light at T$71.8 billion ($2.1 billion), but rising from T$55.5 billion a day earlier. TSMC, the world's top contract chip maker and the most active share by turnover, jumped 5.42 percent, boosting the electronics sub-index 3.24 percent higher. "A rebound on Wall Street and the strong performance of China's stock markets pushed the market higher today," said John Chiu, a vice president of Fuh Hwa Securities Investment Trust.
China plays such as Taiwan Cement rose 3.46 percent. The cement sub-index advanced 3.91 percent. Chiu expected the market to trade between 4,200-4,600 points next week. Taiwan's technology companies such as Taiwan Semiconductor Manufacturing Co (TSMC) and smaller rival United Microelectronics Corp (UMC) sell the bulk of their products in the United States. Shares of UMC advanced 2.59 percent.
Shares of DRAM companies rallied as Taiwan's economics minister said the government has up to T$70 billion in funds to help overhaul the DRAM sector and is considering various options, such as setting up a joint venture company led by the government. Taiwan's top DRAM maker Powerchip jumped by its 7 percent daily limit and Nanya Tech gained 4.49 percent.
The semiconductor sub-index rose 4.28 percent, lifted by a 4 percent rally of the US Philadelphia Semiconductor Index. But shares of DRAM maker ProMOS dropped after a local newspaper said the government would not help repay its debts. ProMOS shares shed 4.17 percent after a newspaper said on Friday Taiwan's economics ministry will not pay any money to help ProMOS meet its debt obligations.
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