TAIEX gains, led by MediaTek, United Microelectronics

Stocks advanced yesterday, tracking gains around the region, on expectations that the capture of former Iraqi president Saddam Hussein may help reduce attacks on coalition forces in Iraq and boost confidence in the US economy.

United Microelectronics Corp (UMC, 聯電) and MediaTek Inc (聯發科技) led gains.

The TAIEX added 65.92, or 1.1 percent, to 5,924.24. About three stocks rose for every one that fell. The Taiwan Futures Index climbed 1.4 percent to 5,968.

The MSCI Asia Pacific Index, which tracks more than 800 stocks in the region, rose 1.7 percent.

Hussein's capture over the weekend may bolster efforts to end opposition to the new regime and also help rebuilding efforts in what was the Middle East's third-largest oil producer before the war.

UMC, the world's No. 2 supplier of made-to-order chips, gained NT$0.50, or 1.7 percent, to NT$29.50.

Taiwan Semiconductor Manufacturing Co (TSMC,台積電), its bigger rival, rose NT$1, or 1.6 percent, to NT$63.

MediaTek, the world's largest maker of chips for DVD players, surged NT$15, or 4.8 percent, to NT$331. Quanta Computer Inc., the nation's biggest notebook computer maker, advanced NT$1.50, or 1.8 percent, to NT$85.5.

Chunghwa Telecom Co (中華電信), the country's biggest phone company, rose NT$0.70, or 1.5 percent, to NT$49.00. The company said Friday a planned buyback of as much as 10 percent of its stock, or shares worth NT$46.6 billion (US$1.4 billion), would probably be delayed until next year.