Taiwan stocks rise as Chi Mei and AU Optronics recover

Stocks rose for the first day in five yesterday after some investors judged the TAIEX' four-day, 6.9-percent decline to be excessive.

The TAIEX, which earlier fell as much as 1.1 percent, also rebounded after crude oil prices for November delivery on the Tokyo Commodity Exchange declined.

The TAIEX rose 72.41, or 1.3 percent, to 5,646.49. About two shares rose for every one that fell. TAIEX futures for June delivery rose 1.2 percent to 5,604.

Stocks also gained as government funds may have bought shares to support the market, some traders and investors said.

"The TAIEX has been oversold, and has reached a level worth investing," said Winnie Tiao (刁明華), chief investment officer at HSBC Asset Management Taiwan. "It's a reasonable guess that state-linked funds entered to prop up prices today, while the oil price drop surely is positive."

Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest maker of flat-panel displays used in computers and televisions, rose 6.2 percent to NT$51.50 as investors judged its two-week, 33 percent tumble to be excessive. Big rival AU Optronics Corp (友達光電) rose 6.3 percent to NT$52 after losing 25 percent over the past two weeks.

Advanced Semiconductor Engineering Inc (日月光) rose 3.6 percent to NT$23.20 on news that the government is considering allowing semiconductor-packaging and testing companies to invest in China.

Siliconware Precision Industries Co (矽品) added 2.1 percent to NT$24.30.

Taiwan Semiconductor Manu-facturing Co (台積電) dropped 0.7 percent to NT$43. United Microelectronics Corp (聯電) rose 0.4 percent to NT$23.50.