TAIEX surges on earnings reports from key players

Stocks surged, posting its biggest weekly gain in 10 months, after earnings reports boosted expectations of an economic rebound.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose by its daily limit.

Hon Hai Precision Industry Co (鴻海精密) and other suppliers to Nokia Oyj rallied after the world's biggest mobile-phone maker said third-quarter profit more than tripled.

The TAIEX climbed 177.36, or 4.1 percent, to close at 4,458.17. The index rose for the first week in five. Its 16 percent advance was its biggest weekly rise since Dec. 7 and the second biggest in 12 years. Only 16 of the index's 597 stocks fell. The total value of trade was NT$123.75 billion, the highest since April 25.

Microsoft Corp boosted its full-year earnings forecast, while International Business Machines Corp reported third-quarter sales rose and Advanced Micro Devices Inc said it expects a 20 percent increase in fourth-quarter revenue.

"The profit numbers coming out of these companies are pretty strong," said Lin Kuan-ho, who manages NT$1.7 billion (US$48.8 million) in stocks at First Global Investment Trust Co (元大投信). "Taiwan is the manufacturer in the technology supply chain, so good news out of the US is positive for companies here."

TSMC, the world's biggest supplier of made-to-order chips, jumped 6.9 percent to NT$46.50, its daily limit. Its shares advanced 30 percent this week.

United Microelectronics Corp (聯電) rose 6.6 percent to NT$25.70, and surged 27 percent for the week.

Hon Hai, which makes components for Nokia's mobile phones, rose 4.1 percent to NT$128.

Nanya Technology Corp (南亞科技), a largest maker of high-speed memory chips, jumped NT$1.60, or 6.8 percent, to NT$25.30. Prices for high-speed computer-memory chips may rise as orders from computer makers surge and chip distributors kept inventories low, a Chinese-language newspaper reported.

BenQ Corp (明基電通) rose NT$1, or 2.1 percent, to NT$48 after Seiko Epson Corp, Japan's largest inkjet printer maker, placed an order for scanners with Taiwan's largest mobile-phone maker.

Ichia Technologies Inc (毅嘉科技) rose NT$1.20, or 2.6 percent, to NT$47.40. The maker of mobile-phone keypads said pretax profit in the first three quarters was NT$275 million, up 29 percent from a year ago. Ichia expects fourth-quarter sales to rise more than 10 percent over the previous three months.