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Asustek, TSMC lead gainers on US interest rate hopes

Stocks rose for a fifth day in six yesterday, led by exporters such as Asustek Computer Inc (華碩電腦), amid optimism that the US will reduce interest rates, boosting growth in the world's biggest economy and fueling consumer spending.

The TAIEX climbed 73.78, or 1.5 percent, to 4,878.43. More than two stocks rose for every one that fell. The index has climbed 4.3 percent since June 5. About 5.18 billion shares changed hands, the busiest since Jan. 28.

The central bank will probably follow any rate cut by the US Federal Reserve later this month, a local newspaper reported, after Fed released a report on Wednesday that bolstered investors' expectations it will cut interest rates June 25.

"Further rate cuts can dump more capital into stocks and investments, averting possible deflation," said Fam Hsieh, who manages US$35 million in funds for the Balance Fund at Grand Cathay Securities Trust Co

(大華投信).

Asustek climbed NT$1.50, or 1.7 percent, to NT$89. Acer Inc added NT$0.60, or 1.6 percent, to NT$37.50.

Chunghwa Picture Tubes Ltd (中華映管) fell NT$0.25, or 2.1 percent, to NT$11.60.

Chunghwa Picture plans to raise NT$4.5 billion (US$130 million) selling 400 million new shares abroad at NT$11.30 a share to help finance a new plant, the company said in a statement. That implies a 4.6 percent discount to the stock's closing price of NT$11.85 yesterday.

First Financial Holding Co (第一金控) rose NT$0.10, or 0.5 percent, to NT$21.70 on a report it plans to buy China Bills Finance Corp (中華票券).
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