Shares close higher after slight NASDAQ rebound

Shares closed 1.51 percent higher yesterday following a modest rebound on Wall Street overnight and a pullback in crude oil prices, dealers said.

AU Optronics Corp (友達光電) was lower on profit-taking after its third-quarter results announcement, but other major technology companies mostly took their lead from a firmer NASDAQ and Apple Inc's strong results in the fiscal fourth quarter, they said.

The benchmark TAIEX closed up 141.76 points at 9,502.39.

Turnover was NT$148.45 billion (US$4.55 billion).

Risers led decliners 1,477 to 540, with 203 stocks unchanged.

Three major institutional investors bought a net NT$1.37 billion worth of Taiwan stocks, with foreign fund managers purchasing a net of NT$1.6 billion, the Taiwan Stock Exchange's data showed.

"Wall Street is set to remain the key to how Taipei and other regional markets perform," said a local trader who declined to be named.

Local technology shares took their lead from the NASDAQ, with the prospect of the latter extending its gains tonight in New York on the back of Apple's stronger-than-expected earnings, he said.

In the short term, corporate earnings will dictate the direction of Wall Street and that of Asian bourses, including Taipei, he said.

AU Optronics closed down 3.4 percent at NT$67.20, despite announcing a consolidated net profit of NT$22.57 billion for the third quarter, up from NT$5.92 billion in the previous quarter.

Chi Mei Optoelectronics Corp (奇美電子) was up 1.77 percent at NT$43.05 and Innolux Display Corp (群創光電) closed 3.51 percent higher at NT$147.50.

Elsewhere in Asia, most regional markets bounced back yesterday as investors overcame some of their nervousness about the credit markets.

Hong Kong shares jumped 3.5 percent, South Korean shares bounced back 2.32 percent and other regional markets also rose, except in New Zealand. Thailand's markets were closed for a holiday.

Japanese stocks rebounded slightly after two days of decline as Wall Street's gains led investors back to recently battered financial shares such as Mizuho Financial Group.

The Nikkei 225 average rose 0.07 percent to 16,450.58 points. The index had lost 3.9 percent over the previous two trading days.

"The mood of decline [which started Monday] is unlikely to continue," said Seiichiro Iwasawa, chief strategist at Nomura Securities.

But he warned that investors should watch the state of the US economy, which "is heading south for sure."

European shares extended their gains by midday yesterday, lifted by the strong performance of British Petroleum and European engineers such as Siemens.

By 10am, the pan-European FTSEurofirst 300 index was up 1.1 percent at 1,560.39 points.