Taiwan stocks ended 2.47 percent higher on Wednesday in their biggest one-day jump in almost three months, paced by HTC and other tech shares, as a Wall Street rally eased concerns of a slowdown in the US economy.
The main TAIEX share index ended up 215.72 points at 8,942.93, for its largest one-day gain since a 2.82 percent surge on August 23. It was still down 9 percent, however, from a seven-year closing high hit on October 29. All subindexes were up, with the heavily weighted electronics subindex rising 2.63 percent and the financial subindex up 1.73 percent.
"The stellar gains on Wall Street indicated that the worst possible news on the US subprime crisis is almost all out there," said John Kuo, who manages T$8 billion ($248 million) for Fuh Hwa Securities Investment Trust. "We expect to see further gains in the Taiwan market with selling pressure to emerge around 9,300 points," said Kuo, adding that he had bought tech shares at the lows this week, including AU Optronics.
Smartphone maker High Tech Computer (HTC), whose products compete with Apple's iPhone, soared by the 7-percent daily limit. AU Optronics, the world's No 3 flat panel maker, climbed 1.1 percent. TSMC, the world's top contract chip maker, gave up earlier gains and closed 0.32 percent lower.
TSMC announced details of a US $1.5 billion share buyback plan, part of Philips' gradual sell-down of its stake in the company. US stocks snapped a four-day losing streak on Tuesday, with the Nasdaq notching up its biggest gain in more than four years.
EnTie Bank, in which private equity fund Longreach Group holds a major stake, shot up 4.69 percent to its highest closing level in almost four months. Longreach has hired the former president of Fubon Bank, the banking arm of Fubon Financial, to become president of EnTie. Fubon Financial was up 2.98 percent.