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Local share prices recover on news of Wall Street's rally

Share prices closed up 0.38 percent yesterday but were off intraday highs as profit-taking capped a technical rebound after Wall Street's steadier performance overnight, dealers said.

They said there was some hope the government might ease its hardline China policies after President Chen Shui-bian (陳水扁), under pressure from his family's alleged involvement in a series of scandals, agreed to give up some of his powers.

The TAIEX was up 25.89 points at 6,872.84, on turnover of NT$91.66 billion (US$2.86 billion).

Risers led decliners 399 to 380, with 101 stocks unchanged.

The tourism sector was up 2.47 percent on fresh hopes that under a more conciliatory policy towards Beijing, more Chinese visitors would be allowed to come to Taiwan.

"The far-from-exciting rebound points to still cautious sentiment given the ongoing correction in the emerging markets, Taiwan included," said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president.

Despite Wall Street's moderate gains overnight, investors remain wary about further volatility going forward, he said.

"[President] Chen's latest move did not have a larger impact on the bourse as most people took it with a grain of salt," he said.

Taiwan Semiconductor Manu-facturing Co (台積電) was up 1.8 percent at NT$61.4 while rival United Microelectronics Corp (聯電) was down one percent at NT$20.00.

On the Taipei foreign exchange market, the New Taiwan dollar was at NT$32.11 against the US dollar, down NT$0.091 from the previous day.
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