Taiwan stocks rose yesterday for the first time since Monday, led by Hon Hai Precision Industry Co (鴻海精密) and other computer parts makers. The stocks rose on optimism that demand for the nation's biggest export market may recover sooner than expected after the US' latest economic report.
The TWSE Index rose 26.20, or 0.7 percent, to 3929.69. Within the index, 228 stocks rose, and 181 fell. The total value of trade was NT$49.4 billion (US$1.4 billion), 7 percent higher than the six-month daily average of NT$46.3 billion.
"PC demand is no longer getting worse," said Yu Wei-kuo, who manages NT$130 million (US$4 million) in stocks at Polaris Investment Trust Co (寶來投信). "Demand is very slowly returning, and when it normalizes, related component demand will rise." Personal computer and PC part makers rose on optimism that demand may start to revive as a smaller-than-expected economic contraction in the US may prompt consumers to spend more.
Hon Hai rose NT$5, or 3.9 percent, to NT$133. The company, which is the only supplier of a socket used to connect Intel Corp's latest processor to computer circuit boards, filed a lawsuit against Tyco International Ltd (台灣泰科). Hon Hai accused Tyco, the biggest maker of electrical connectors, of alleged infringements of its socket patent rights.
Asustek Computer Inc (華碩電腦), Taiwan's largest motherboard maker, rose NT$3, or 2.5 percent, to NT$121. Quanta Computer Inc (廣達電腦), Taiwan's largest notebook computer maker, rose NT$0.50, or 0.7 percent, to NT$74.50. Finance companies fell on concern the establishment of financial holding companies won't resolve quickly the problems of overbanking and rising bad loan rates among the nation's lenders.
Non-performing loan rates could rise above 20 percent, according to rating agency Fitch.
Hua Nan Commercial Bank (華南銀行), Taiwan's second- largest lender by assets, fell NT$0.20.
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