TAIEX hits two-month high on news of UN-Iraq deal

The TAIEX had its biggest gain in two months after the UN said Iraq will allow weapons inspectors back into the country in an effort to avert war with the US.

Exporters such as Asustek Computer Inc (華碩電腦), whose customers include Dell Computer and Hewlett-Packard Co, surged.

"The US economy would continue to slide with a war," said Joseph Wang, who manages NT$2 billion (US$57 million) in stocks at Polaris Investment Trust Co (寶來投信). "With no war, it'll recover faster, which is good for Taiwan's exports."

The TAIEX rose 176.70, or 4 percent, to 4,633.86. It was the index's biggest gain since July 12.

Asustek, the nation's largest maker of boards connecting chips that run computers, rose NT$5, or 6.5 percent, to NT$82.

Quanta Computer (廣達電腦), the nation's largest notebook-computer maker, rose NT$4.50, or 6.6 percent, to NT$72.50.

More than 11 stocks rose for every one that fell. The total value of trade was NT$67.82 billion.

D-Link Corp (友訊) rose NT$2.50, or 6.9 percent, to NT$38.70. The communications-equipment maker received an order from a telecommunications company in Ningbo, China, to set up a broadband communications network for the city, according to a newspaper report.

Eva Airways Corp (長榮航空) rose NT$0.80, or 6.7 percent, to NT$12.80. The carrier raised its pretax profit forecast for the year by 37 percent to NT$1.41 billion after its cargo transportation business did better than expected.

Gigabyte Technology Co (技嘉科技) rose NT$1, or 1.6 percent, to NT$65.50 on news that the company's shipments in September may reach a record of more than 1.5 units, driving up sales.

EnTie Commercial Bank (安泰銀行) rose NT$0.13, or 2.7 percent, to NT$4.90.