Stocks rose for a second day yesterday. Hon Hai Precision Industry Co (鴻海精密) gained after Credit Suisse First Boston kept its "outperform" rating on the stock on expectations its third-quarter earnings will be better than the industry's.
The TAIEX added 10.37, or 0.2 percent, to 5,705.93. For the week, it fell 1.2 percent.
Futures due in November shed 0.7 percent to 5,691. About two stocks declined for every one that gained.
Companies that rely on demand from China such as Formosa Chemicals & Fibre Corp (
"Commodity prices have been riding on the back of Chinese demand, but China's interest rate increase will push some investors off the ride," said Yu Reming, a Taipei-based fund manager at PCA Securities Investment Trust Co.
Hon Hai Precision, the country's largest electronics company by sales, rose 3.8 percent to NT$123. Earnings of the company "will stand out on a relative basis," compared with disappointing results from other technology companies in Taiwan, Credit Suisse First Boston said in a note.
Formosa Chemicals fell 2.6 percent to NT$56.50. China Steel fell 0.6 Percent to NT$33.60.
Advanced Semiconductor Engineering Inc (日月光), the world's largest chip packager, rose 0.9 percent to NT$23 after it said profit more than tripled to NT$1.96 billion in the third quarter.
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