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.
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
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