Stocks gained, snapping a four-day drop, after the ruling party's presidential candidate proposed introducing a new policy that would welcome Chinese investors and ease investment limits. Hon Hai Precision Industry Co (鴻海精密) paced the gains.
"The new China policy from the ruling party would be a plus for stocks of Taiwan companies already invested heavily there," said Tracy Chen (陳翠芝), who helps manage US$2.3 billion at PCA Securities Investment Trust Co.(
Mediatek Inc (聯發科技) paced declines among exporters on concern the US subprime mortgage turmoil will hurt corporate earnings and consumer demand in the world's largest economy.
The TAIEX index added 35.51, or 0.4 percent, to close at 9,308.60, snapping the 5.5 percent drop in the previous four trading days. About three stocks slipped for every two that gained yesterday. November futures rose 0.5 percent to 9,275.
Hon Hai, which makes Apple Inc's iPod in China, climbed NT$10, or 4.4 percent, to NT$235 (US$7.25). Uni-President Enterprises Corp (統一企業), the nation's biggest food company which supplies instant noodles to China, rose NT$1, or 2.3 percent, to NT$45.15.
SUPPORT
Democratic Progressive Party presidential candidate Frank Hsieh (
Mediatek Inc, the world's largest supplier of chips for DVD players, slid NT$41, or 6.9 percent, to NT$552. Nanya Technology Corp (
DEALS
The Wall Street Journal reported on Friday that Merrill Lynch and Co may have struck deals with hedge funds in an attempt to conceal losses on subprime investments. Two weeks ago, Merrill revealed a US$7.9 billion writedown linked to mortgage investments.
It also reported that Citigroup Inc, the largest bank in the US, may have to post between US$8 billion and US$11 billion in additional writedowns on mortgage-related securities.
DETERIORATION
"Signs of deterioration in the US economy are causing grief on corporate earnings outlooks," said Sam Hsieh, who helps oversee US$2.7 billion at FuHwa Investment Trust Co (復華投信). "Investor confidence on US demand is again weakened."
The US is Taiwan's largest export market after China.
Elsewhere, China Steel Corp (中鋼), the nation's largest steelmaker, rose 2.1 percent to NT$44.90. China Steel said sales last month rose 8.2 percent from a year earlier to NT$18.4 billion.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
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