Chipmakers advance on US jobs report

Stocks rose yesterday, with the TAIEX having its biggest gain in three weeks.

Taiwan Semiconductor Manu-facturing Co (TSMC,台機電) advanced after the US created more jobs last month than economists forecast, boosting optimism for Taiwan's technology exports.

Banks like Cathay Financial Holding Co (國泰金控) jumped after Taiwanese stocks were increased to "overweight" in Goldman, Sachs & Co's model portfolio, three months after the brokerage cut them to "marketweight," because declines in their share prices made them attractive. Goldman recommended investors buy shares of banks, energy and technology companies.

The TAIEX added 210.93, or 3.7 percent, to 5,935.82. It was its biggest percentage gain since May 19. About 19 shares rose for every one that fell. TAIEX futures for June delivery rose 5.1 percent to 5,890.

"A better US jobs data would boost consumer confidence and ... buoy our exports, which rely a lot on the US market," said Kevin Lin, who is an asset manager at Shinkong Investment Trust (新光投信).

TSMC rose 3.8 percent,to NT$55. United Microelectronics Corp (聯電) added 4.7 percent to NT$27.

"The ... report raised hopes that overseas funds would flow in again," said Tu Jin-lung (杜金龍), president of Grand Cathay Investment Services Co (大華投信).

Cathay Financial jumped by the 7 percent daily limit to NT$59.