* Market hits more than five-week closing high
* Asustek leads technology shares higher on improving outlook
* ProMOS jumps on government official comment
TAIPEI, Feb 13 - Taiwan stocks rose 2.82 percent on Friday, their largest daily gain in 1-½ months, led by Asustek on expections tech companies would bottom out in the first quarter following massive losses late last year.
The main TAIEX share index closed up 126.08 points at 4,592.50, its strongest finish since Jan. 7. The day's percentage rise was the biggest since Dec. 30, 2008.
Turnover was T$74.6 billion , lower than Thursday's T$80 billion.
Netbook PC pioneer Asustek, the third-most active stock by turnover, surged by its 7 percent daily limit, after reporting results that came in line with expectations.
"There are good chances for Asustek's inventory level to come down. Its stock prices have dropped a lot, and now long-term investment value has emerged for Asustek shares," said John Chiu, a vice president of Fuh Hwa Securities Investment Trust.
Chiu expected the market to trade between 4,300-4,700 points next week.
Shares of Asustek's larger rival Acer, the world's No.3 PC seller, shop up 6.49 percent.
The shares gained despite a statement by research firm IDC that global shipments of PC processors in the fourth quarter fell more than 11 percent from a year earlier as tech demand shrivelled due to the global financial crisis, with the outlook expected to be grim in the first half of 2009.
The electronics sub-index ended 3.25 percent higher.
Optimism about an improving sector outlook also spread to ASE, the world's top chip packaging firm, which gained 2.46 percent. ASE posted a net loss of T$800 million in October-December, its first quarterly loss in nearly three years.
Flat panel maker Chi Mei ended up 0.86 percent, recouping early losses as the company expected first-quarter shipments to grow an average 5-10 percent from the fourth quarter as its business is bottoming out from the sector's slump.
ProMOS, Taiwan's No. 3 DRAM maker, ended limit-up.
Taiwan's economics ministry said it hoped a bank consortium would agree to lend T$5 billion to ProMOS, though the Bank of Taiwan, which is leading the talks, said on Friday a deal had not been reached.
ProMOS is under growing pressure to pay off a T$11 billion five-year convertible bond due on Saturday.
ProMOS's larger rivals Powerchip and Nanya Tech both rose more than 2 percent. The semiconductor sub-index was up 2.97 percent. ------------------------------------------------------------
Move on day 2.82 percent
Close on day 4,592.50
2009 intraday high 4,817.44
2009 intraday low 4,164.19
All time high 12,682.41 12 FEB 1990 ------------------------------------------------------------
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