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Local shares get a boost from positive US economic data

Share prices closed 1.49 percent higher yesterday, tracking Wall Street's gains after US jobs data showed that an economic slowdown might not arise or be as severe as some have expected, dealers said.

The bellwether tech sector was firmer on expectations of improved corporate earnings in the current quarter as the industry gears up for its traditionally strong performance in the run-up to the Christmas shopping season, they said.

The weighted index rose 99.32 points 6,750.78, off a high of 6,761.65, on turnover of NT$91.44 billion (US$2.70 billion).

"Investors, apparently, were convinced by Wall Street's rally, with the buying spree bolstered by various industry leads while political concerns eased," said Frank Lin, senior vice president at Fubon Securities (富邦證券).

The NT dollar's gains against the US dollar also helped lift sentiment further, dealers said.

"Given the appreciation of the local currency, foreign investors also lent support to the local bourse, and technology stocks in particular attracted interest," Lin said.

He said even laggard stocks from last week picked up pace as technical factors led investors to increase their portfolios.

Companies that are drawing a rosy picture for the current quarter or the last quarter rose sharply on expectations of increasing demand, Lin noted.

Taiwan Semiconductor Manufacturing Co (台積電) gained NT$0.50 to NT$59.30 and United Microelectronics Corp (聯電) rose NT$0.20 to NT$18.30.

MediaTek Inc (聯發科技) closed up NT$11 at NT$327, Hon Hai Precision Industry Co (鴻海精密) rose NT$9.50 to NT$200.50.
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