Taiwan's key stock index rose for the second time in seven days after the government and the central bank pledged to buy the island's currency after it slumped to a two-and-a-half year low.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led gains as investors bought computer-related shares on expectations corporate profits will rebound in the fourth quarter after the NASDAQ Composite Index posted its biggest gain in a month.
"We have a full range of measures that can counter market volatility and irrational movements," said Finance Minister Yen Ching-chang (顏慶章). The government manages a NT$500 billion (US$14.9 billion) stock market stabilization fund.
Leaving the broad market mixed, memory-chip maker Nanya Technology Corp (
The TWSE index rose 32.87, or 0.7 percent, to 4991.48.
Within the index, 272 stocks fell and 144 rose. In the last month, the TWSE Index has become the world's worst performer, down 12 percent in U.S. dollar terms.
"Taiwan stocks are oversold," said Simon Chao, who manages NT$700 million (US$20 million) in Taiwan stocks at President Investment Corp(統一投資) in Taipei. "The market may rebound, but it's just short term." Chipmakers who make semiconductors on a made-to-order basis advanced after the Philadelphia Stock Exchange Semiconductor Index, a price-weighted index of 16 companies involved in the design and manufacture of chips, surged 7.4 percent yesterday.
TSMC, the world's biggest build-to-order chipmaker, rose NT$1.50, or 1.7 percent, to NT$90. United Microelectronics Corp (UMC,
Nanya Technology fell NT$1.50, or 6.2 percent, to NT$22.80. Nanya, which scrapped a share sale in October after the price plummeted, said it will apply to the Taiwan government to lower the asking price of new shares that it plans to sell to fund expansion. The memory-chip maker didn't specify the price it will set for the shares. The company will offer 500 million new shares in Taiwan as early as July, said Vice President H.M. Chen.
Stocks that were dropped from the Morgan Stanley Capital International Inc's indexes declined as global money managers who use the indexes to gauge their portfolios' performance will probably mimic the changes and reduce their Taiwan holdings in coming months.
Ever Fortune Industrial Ltd (
Episil Technologies Inc (漢磊科技) rose NT$0.50, or 1.7 percent, to NT$30.40. The Taiwan maker of computer chips that regulate power in electronics will buy closely held rival Hualon Microelectronics Corp (華隆微電子) for NT$1.48 billion (US$44 million) in cash.
Picvue Electronics Ltd (
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