Taiwan stocks rose, paced by TaipeiBank (台北銀行), after Fubon Financial Holding Co (富邦金控) said it will pay NT$80.3 billion in new shares to take over the lender controlled by the city government.
Stocks also gained after the Dow Jones Industrial Average and Standard & Poor's 500 Index had their biggest three-day rallies in almost 15 years.
The TAIEX rose 151.21, or 3.2 percent, to 4851.44, as almost 14 stocks rose for every one that fell. The benchmark fell 1.4 percent in the week. The total volume of trade today was NT$82.84 billion, the highest this month.
TaipeiBank rose by its 6.9 percent daily limit, to NT$30.90. Fubon was unchanged at NT$32.8.
"That'll lift TaipeiBank's shares, though for Fubon the benefits will take longer to show," said David Chu, who manages NT$700 million in stocks at Reliance Securities Investment Trust Co (德信投信). "I'm buying a few financial stocks, but I'm focusing on electronics stocks. Demand should start reviving at the end of the third quarter and into the fourth quarter."
Micro-Star International Co (微星電腦) rose NT$3.50, or 3.6 percent, to NT$101. Taiwan's second-largest maker of motherboards reported sales in July rose 58 percent from a year earlier and a fifth from the previous month to NT$4.89 billion.
Gigabyte Technology Co (技嘉科技) rose NT$4, or 5.4 percent, to NT$78.50. The motherboard maker said sales in July rose 10 percent on year and 7 percent from June to NT$2.2 billion.
Arima Computer Corp (華宇電腦) rose NT$0.80, or 4.5 percent, to NT$18.50. The notebook-computer maker reported July sales more than doubled from a year earlier.
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