Taiwan's TAIEX climbed to its highest in almost three months on expectations the central bank may cut interest rates after the economy shrank at its fastest rate in 26 years in the third quarter. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led gains.
The TAIEX added 102.01, or 2.3 percent, to 4,548.63, its highest since Aug. 20. Within the index, 406 stocks rose and 85 fell.
"We're buying more stocks, especially TSMC and UMC [United Microelectronics Corp, 聯電] as their revenue from the fourth quarter will be better than the third quarter," said Cheng Yi-sheng, who helps manage NT$1.5 billion ($43 million) in Taiwan investments at Taiwan Securities Co (台証證券).
Mike Newton, an economist at HSBC, said the central bank may reduce the rediscount rate, charged to commercial lenders for 10-day loans, by as much as half a point to 1.75 percent from 2.25 percent, a record low.
The total value of trade yesterday was NT$93.9 billion (US$2.7 billion), down 15 percent from Friday's NT$110.9 billion.
Made-to-order chipmakers rose on expectations orders from Nvidia Corp for TSMC chips and Advanced Micro Devices Inc for UMC semiconductors will boost both companies' earnings.
TSMC, whose US shares climbed 4.1 percent to US$16.24, rose NT$2, or 2.6 percent, to NT$79.50. UMC, whose US shares added 1.3 percent to US$7.70, rose NT$0.90, or 2.3 percent, to NT$39.50.
Computer-parts makers rose on hopes the global economic recovery may come sooner rather than later, boosting demand. The Sept. 11 terrorist strikes won't damp world growth prospects, and governments must guard against pessimism about the impact of the attacks, top officials from 20 leading economies and developing nations said.
"We are confident that the attacks of Sept. 11 will not undermine our future economic prospects," the G-20 said in a statement released at the end of meetings in Ottawa.
"We have taken policy actions to maintain liquidity and stabilize markets. We stand ready to take additional actions as necessary."
Acer Inc (宏電), a computer maker, rose NT$0.90, or 6.9 percent, to NT$13.90. Asustek Computer Inc (華碩電腦), the biggest computer motherboard maker in Taiwan, rose NT$4.50, or 3.7 percent, to NT$127.50. Hon Hai Precision Industry Ltd (鴻海精密), which makes everything in a computer except chips, gained NT$3, or 1.9 percent, to NT$158. Quanta Computer Inc (廣達電腦), the biggest notebook maker in Taiwan, added NT$2, or 2.5 percent, to NT$83. VIA Technologies Inc (威盛電子), the second-biggest chipset seller, rose NT$8, or 6.8 percent, to NT$125.50.
Macronix International Co (旺宏電子) rose NT$1.10, or 4.7 percent, to NT$25.70. Taiwan's largest maker of memory chips used in consumer electronics said it will build one plant, not two, and delay construction of a new factory by a year because of land acquisition problems.
Yageo Corp (國巨) rose NT$0.20, or 0.9 percent, to NT$23.60. The company, one of the largest makers of parts that control the flow of electricity in personal computers and mobile phones, raised NT$2.1 billion (US$61 million) by selling bonds without guarantees to pay back bank loans charging higher interest rates.
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