Taiwan stocks rose for a third day in four, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after gains in the NASDAQ Comp-osite Index spurred foreign and local buying of electronics companies on hopes of an improvement in earnings next year.
On Friday, the NASDAQ gained 1.5 percent.
The TAIEX gained 89.24, or 2 percent, to 4,608.22, its biggest advance in a week. Two stocks rose for every one that fell. The total value of trade was NT$107.2 billion (US$3.1 billion), a 23 percent increase from NT$87 billion on Friday.
The NASDAQ, 52 percent of whose market value are computer and telecommunication stocks, and the TAIEX Index, 62 percent of whose market value are electronics stocks, have a correlation of 0.9 over the last six months. A value of 1 means the two securities move in lockstep.
The TWSE Index has surged 34 percent since its year low Oct. 3. The NASDAQ has gained 20 percent during the same period.
Made-to-order chipmakers gained after the widely watched Philadelphia Semiconductor Index, a price-weighted index of 16 companies that design and manufacture chips, rose 1.6 percent Friday.
"What people are buying into is the second-half of 2002" for stocks like TSMC and UMC, said Ming Kai Cheng, an analyst at CLSA Ltd in Taipei. "Incrementally we'll not see much good news for the foundries."
TSMC, the biggest made-to-order chipmaker, rose NT$0.50, or 0.7 percent, to NT$74. United Microelectronics Corp (UMC,
Telecommunication equipment shares rose on expectations orders on expectations US consumer confidence is increasing, raising hopes sales of the nation's products may pick up.
Accton Technology Corp (智邦科技) rose NT$3, or 5.5 percent, to NT$57.50. D-Link Corp rose NT$2.70, or 6.8 percent, to NT$42.60. Sunplus Technology Ltd (凌陽科技) rose NT$2, or 2.3 percent, to NT$87.50.
Non-computer exporters gained on expectations US consumer confidence is recovering and that will help boost sales and earnings. "The economy is about ready to hit bottom," said Mark Zandi, chief economist at Economy.com in West Chester, Pennsylvania. "The consumer is going to continue to spend enough to forestall a more debilitating recession."
Test-Rite International Ltd (
Quanta Computer Inc (廣達電腦) rose NT$3.50, or 4.3 percent, to NT$85. The nation's biggest notebook computer maker estimates production in China and Taiwan will reach 1 million a month by the end of 2003 and sales will reach US$10 billion by then, the Economic Daily newspaper reported, citing Chairman Barry Lam (林百里).
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College