Staff Reporter
Stocks rallied to a 20-month high yesterday, as investors snatched up electronics shares amid signs indicating that the government will further relax the decades-long restrictions on China-bound investment.
Companies with a pressing need to build up their presence in China, such as top contract chipmaker Taiwan Semiconductor Manufacturing Corp (TSMC,
The two companies have been calling the government to ease investment restrictions in China.
"An easing cross-strait trade policy will help Taiwanese firms, especially electronics companies, to lower costs by using cheaper labor [in China], and thereby safeguard their competitiveness," said Stevie Chou (
The benchmark TAIEX index jumped 95.43 points, or 1.49 percent, to close at 6,512.63 yesterday, marking its highest level since April 28 last year. Turnover expanded to NT$114.87 billion (US$3.45 billion) from NT$105.2 billion the previous day.
The planned policy changes will also help local companies increase their financial flexibility, Chou said. Under current government restrictions, some Taiwan companies choose to trade their shares in Hong Kong, he added.
Premier Frank Hsieh (
In addition to the policy change, foreign investors' aggressive buying also helped drive the stock market higher, said Henry Miao (
"Overseas fund managers are favoring Asian stocks and they are boosting their purchases," Miao said.
Foreign investors increased their net buying of local stocks to roughly NT$8 billion yesterday. United Microelectronics Corp (UMC,
UMC shares climbed 1.55 percent to NT$19.65.
Miao expected that foreign fund mangers will continue their buying and help boost the TAIEX to around 6,800 points by the end of the year.
Shares of Yaego Corp (
The Chinese-language online news service provider Yahoo Kimo Inc (
Yaego denied the report in mid-session, but said it welcomed long-term investors.
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure