Taiwan's key stock index had its biggest gain in two months, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after Applied Materials Inc's better-than-expected earnings and a surge in US retail sales in April.
The TWSE Index rebounded from a midday loss of as much as 54 points in five minutes after a magnitude 6.2 earthquake struck Taiwan at 11:46am local time. The Central Weather Bureau said that Hsinchu, where TSMC and other major electronics manufacturers are based, experienced tremors at a magnitude of 3.0.
The index rose 154.77, or 2.7 percent, to 5910.69, while nine stocks rose for every two decliners. It was the biggest gain since March 11. Trading rose 58.8 percent to NT$99.8 billion (US$2.9 billion). A Central Weather Bureau report predicting heavy rain this afternoon helped ease concerns over a water shortage, which had damped trade earlier this week.
"The positive news from the US should help boost the market as shares here have slumped for quite some time," said Peng Kuo-hsing, who helps manage NT$500 million of bonds and equities at First Global Investment Trust Co (
He recently bought more shares of Hon Hai Precision Industry Co (
TSMC rose NT$3, or 3.5 percent, to NT$90.
United Microelectronics Corp (UMC, 聯電), TSMC's rival, rose NT$1.8, or 3.7 percent, to NT$51.
Formosa Plastics Corp (台塑) gained NT$2.1, or 5.3 percent, to NT$42. A refinery in Texas operated by Royal Dutch Petroleum Co's Shell unit caught fire, which may reduce the supply of ethylene and propylene in the US and benefit Taiwan petrochemical producers, Cable News Network reported.
Nanya Technology Corp (
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