Taiwan stocks rose 0.81 percent on Friday to a 19-month closing high, led by Asustek Computer on Intel's stronger-than-expected quarterly earnings, which pointed to firm demand for PCs. The main TAIEX share index rose 66.91 points to 8,356.89, its highest finish since June 10, 2008.
Intel said on Thursday its gross profit margin in the fourth quarter rose to a record 65 percent. "The TAIEX rose mainly on Intel's better-than-expected earnings. Besides, most economic data are rising as the economy recovers and many companies like Asustek are making money," said Kevin Chung, an analyst with Jih Sun Investment Consulting Co.
The TAIEX will likely hover at the current level next week as foreign investors have already spent T$130 billion ($4.1 billion) to buy local shares recently, he said. Turnover shot up to T$170 billion ($5.4 billion) from T$146 billion in the previous session. Net pioneer Asustek advanced 3.08 percent, with the electronics sub-index 1.13 percent higher.
Powerchip Semiconductor Corp, which supplies DRAM chips mainly for computers, surged 3.15 percent and rival Nanya Tech soared 6.27 percent. TSMC, the world's largest contract chip maker, gained 0.47 percent. The firm said on Thursday it will recruit more than 3,000 employees, or about 13 percent of its total workforce, in 2010 as it expands capacity to meet future demand.
Among the most heavily traded stocks by turnover, Mediatek, the world's No 2 cell phone chip supplier, advanced 1.92 percent. Fubon Financial, parent of Taiwan's No 2 life insurer, climbed 0.64 percent while rivals Cathay Financial and Shin Kong Financial both ended flat.
A Memorandum of Understanding (MoU) sealed between Taiwan and China will take effect on Saturday, allowing the island's financial firms to tap the mainland market and paving the way for banks on both sides to invest in each other.
"The MoU is unlikely to have a great impact on the Taiwan market next week as Taiwan still poses lots of restrictions on Chinese bank investment in the island," said Alex Huang, a director with Mega International Securities Co. AU Optronics, the world's No 3 flat-panel maker, rose 1.61 percent and smaller rival Chi Mei Optoelectronics was up 2.48 percent, pushing the optoelectronics sub-index 1.76 percent higher.
"The outlook of flat-panels is better-than-expected, with the Chinese buying large amounts of good-quality home tech products like TVs for the Chinese New Year and China's demand for screens for the World Exposition in Shanghai this year," said Chung. The Commercial Times reported on Friday that annual revenues at Chi Mei could hit T$600 billion this year after its merger with Innolux and TPO Display, surpassing AU Optronics to become Taiwan's largest LCD maker.
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