Taiwan stocks rose 1.28 percent to their highest close in more than 14 months on Wednesday, as positive retail sales data from the United States boosted buying in technology shares such as Asustek. The main TAIEX share index finished 93.98 points higher at 7,440.24, the highest close since June 30, 2008. Netbook pioneer Asustek outperformed the broader market, rising 2.68 percent.
Analysts say Asustek's gross profit margin and sales could improve in the second half of the year on expectations that consumer demand for PCs would increase. US retail sales rose in August at the fastest pace in 3-1/2 years, offering hope for a solid recovery from a severe recession.
"Taiwan stocks rose amid growing confidence of a stronger global economic recovery," said Kevin Chung, an analyst at Jih Sun Investment Consulting Co. He expects the main index to trade between 7,400 and 7,500 points for the rest of the week. "Downstream technology companies fared especially well today and in the last couple of days, on hopes that growing demand for PCs would bring them more orders."
The computer and peripheral equipment sub-index rose 1.51 percent to a near 16-month high, extending gains from the previous session. Quanta Computer, the world's largest contract laptop PC maker and a key supplier to top brands such as HP, advanced 1.92 percent. Hewlett-Packard has recently unveiled more than 20 new PCs ranging from netbooks, ultra-thin notebooks and desktop computers in Singapore, a local newspaper reported.
Medical-related shares were among the session's top gainers, jumping 2.35 percent, after the island's health authorities confirmed more deaths on H1N1 infections. Chung said while the main index is seen to trek higher over the next few months, the gains could be limited as high price shares began to show signs of waning momentum. Turnover was more active at T$132 billion ($4 billion) compared with Tuesday's T$97 billion.