Taiwan stocks rose 1.31 percent to their highest close in nearly 16 months on Wednesday, with chip makers including TSMC rising after Intel reported quarterly earnings that beat market expectations. The main TAIEX share index closed up 99.15 points at 7,695.75, its highest closing level since June 26, 2008. Turnover was moderate at T$148 billion ($4.6 billion), compared with Tuesday's T$129 billion.
TSMC, the world's largest contract chipmaker, rose 2.75 percent, while its smaller rival UMC jumped 4.87 percent. "Forecast-beating results and an upbeat outlook from Intel was quite uplifting, as they eased investors' worries over a slow fourth quarter," said John Chiu, a vice president at Fuh Hwa Securities Investment Trust.
TSMC and UMC topped the list of most-active stock by turnover and volume, respectively. A recovery in demand for personal computers also boosted shares of PC makers. After its stellar quarterly results, Intel told Reuters that it is comfortable with analysts' estimates of about 10 percent growth in global PC shipments next year on increasing appetite for portable computers.
Acer, the world's No 3 PC brand, rose 1.36 percent after saying its third-quarter revenue would be up about 5 percent amid a rebound in tech demand. ProMOS Tech jumped 6.83 percent after Hynix Semiconductor said an improved global economy and the launch of Microsoft's Windows 7 operating system were expected to support demand for memory chips through the first half of 2010.
Innolux Display, the world's No 2 LCD monitor maker, rose 3.01 percent after a newspaper reported that it could supply panels to Apple. Chip designer Mediatek Inc rose 1.2 percent after a newspaper reported that it is likely to sell the 16 million shares it owns in smaller rival ALi Corp by the end of the year to focus more on its core business.
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