Taiwan stocks rose, paced by exporters such as Hon Hai Precision Industry Co (鴻海精密), after US Federal Reserve officials said interest rates are low enough to fuel an economic rebound in the island's second-largest overseas market.
``In July and the start of August, investors had got too pessimistic about the U.S. economy,'' said Hsieh Ching-hui, who manages NT$480 million (US$14 million) in stocks at KGI Securities Investment Trust Co (中信投信). ``Now people are thinking it may not be that bad, and demand during the Christmas season will rise, which is good news for exporters.'' TAIEX rose 68.70, or 1.4 percent, to 4956.49. Four stocks rose for every one that fell. The total value of trade was NT$85.59 billion (US$2.44 billion).
Hon Hai, whose customers include Dell Computer Corp and Intel Corp, rose NT$3, or 2.3 percent, to NT$136.
Askey Computer Co (亞旭) gained NT$2.3, or 6.2 percent, to NT$39.70 after a local newspaper reported the communications-equipment maker received an order for high-speed modems from BT Group Plc. The company also reported second-quarter profit that rose almost three-quarters from a year earlier to NT$318 million.
Ritek Corp (錸德) fell NT$1.30, or 7 percent, to NT$17.40. The world's largest maker of recordable compact discs dumped its profit forecast for the year for a NT$3.25 billion loss.
Premier Image Technology Corp (普立爾) fell NT$1.50, or 2.9 percent, to NT$51. The world's biggest maker of compact cameras reported first-half pretax profit fell a fifth to NT$419 million from a year ago.
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