TAIEX gains 44 points after good news from Sony

Taiwan gained, paced by Hon Hai Precision Industry Co (鴻海精密), after a local Chinese-language newspaper reported Sony Corp will place more orders with Taiwan's largest computer-parts maker.

Stocks advanced after the NASDAQ Composite Index surged 5.1 percent. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose NT$2, or 3.9 percent, to NT$53, tracking a 4.6 percent gain in its US-traded shares.

The TAIEX gained 44.04 points, or 0.9 percent, to 4931.47. More than three stocks rose for every two that fell. The total value of trade was NT$101.66 billion (US$3 billion), the highest since June 13.

Hon Hai, which assembles Sony's PlayStation 2 game console, gained NT$4.5, or 3.5 percent, to NT$132.

"Electronics makers' share prices have bottomed, with the industry heading into the peak season ahead of Christmas," said James Lin, who manages NT$600 million ($18 million) in stocks at Union Securities Investment Trust Corp (聯邦投信). "Profit growth may be flat this year, but it should grow faster than non-electronics stocks as the industry recovers next year."

Powerchip Semiconductor Corp (力晶半導體) rose NT$0.20, or 1.2 percent, to NT$17.50. The chip maker said its second-quarter loss narrowed more than two-thirds to NT$370.5 million as it cut costs by etching more chips onto each silicon wafer.

Compeq Manufacturing Co (華通電子) rose NT$1.90, or 6.7 percent, to NT$30.40 after local media reported that the printed-circuit-board maker will turn to a profit next year after forecasting a loss this year, citing Compeq Chairman Wu Chien (吳健).