Taiwan stocks hit five-month high

Taiwan stocks rose 0.38 percent to a five-month closing high on Wednesday, with major technology companies and financial shares extending recent gains on optimism over earnings growth. Investors chased shares of touch-panel makers on expectations of rising demand for mobile phones and tablet PCs at a time when the PC market is struggling with weaker demand in Europe and the United States.
The optoelectronics sub-index rose 0.9 percent and the financial sector edged up 0.7 percent, boosting the main TAIEX index 31.22 points to 8,163.82, the highest close since April 15. After a 15-percent rally that started from the year's trough in late May, selling pressure will be heavy when the TAIEX approaches 8,200 points, Tang said. Foreign investors bought T$10.3 billion ($320 million) of Taiwan shares on Tuesday, bringing total net buying to T$37.2 billion this month.