Taiwan stocks rose for the first day in four, led by Hon Hai Precision Industry Co (鴻海精密), after a newspaper reported the company had won an order to supply Nokia Oyj with 5 million mobile telephone handsets.
Hon Hai has underperformed the technology sector in the last month. Its shares have risen 1 percent in the period, while Taiwan's Electronic Index gained 21 percent.
The TAIEX Index gained 87.14, or 1.7 percent, to 5,309.10, after earlier falling as much as 1.5 percent. Within the index, 2,314 stocks rose and 184 fell. The total value of trade yesterday was NT$101.2 billion (US$2.9 billion), down from NT$115.2 billion on Wednesday.
Hon Hai rose NT$6, or 4.1 percent, to NT$154. Nokia Oyj, the largest mobile-phone maker, agreed to order at least 5 million mobile phone handsets next year from Hon Hai, the Chinese language Economic Daily News reported, citing the Market Intelligence Center (
Hon Hai moved most of its production to its China subsidiary Foxconn Electronics Inc (富士康) to cut costs. Foxconn is building a mobile-phone component production unit adjacent to Nokia's assembly plant in Beijing.
Banks fell. Taiwan's Bank, Insurance Index slid 1 percent yesterday. It has risen 47 percent since July 24, its year low and 24 percent this month. Economists expect the economy to shrink 2.6 percent this year. That may increase financial institutions' bad debts.
Chinatrust Commercial Bank (
Chunghwa Picture Tubes Co (中華映管) rose NT$1.40, or 6.6 percent, to NT$22.70. The maker of flat-panel displays said it will team up with Korea's Hyundai Display Technology Inc to expand production and share technology developments.
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