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Taiwan stocks hit 1-month high, tech exporters up

Published: 01 Jul 2009 19:07:50 PST

* Export-reliant shares rise on U.S. data

* PC-related shares climb on back-to-school demand

* Property plays up for second straight day on China hopes (Add details, indexes, quotes)

TAIPEI, July 2 - Taiwan stocks rose 1.6 percent on Thursday to a near one-month intraday high, with reassuring U.S. data boosting export-reliant stocks such as AU Optronics and Hon Hai.

"The data from United States and China, such as ISM and PMI, all pointed to a slow yet firm recovery in economy," said Andrew Deng, an assistant vice president at Taiwan International Securities Corp.

"Since the United States is one of Taiwan's largest export markets, the data is quite uplifting for the broader board."

The main TAIEX share index opened up 106.2 points at 6,684.8 as of 0221 GMT, its strongest intraday level since June 8.

Besides the impact of the U.S. data, LCD maker AU Optronics rose more than 5 percent after a newspaper reported the company turned profitable in June amid rising panel prices due to demand from China.

Other LCD makers also gained, with smaller rival Chi Mei up 3.9 percent, helping the broader optoelectronics sub-index gain 3.7 percent.

"Tech shares will continue to thrive because of the LCD sectors," said Deng. "And let's not forget about the back-to-school demand ahead, which would boost the notebook demand"

Expectations of increased demand in the third quarter also helped boost PC-related shares, with the world's third-largest PC brand Acer climbing 4.0 percent, leading the computer and peripherals sub-index up 2.8 percent.

Chip designer Mediatek rose 2.6 percent after local media reported its chairman Tsai Ming-kai would reverse a previous salary cut it implemented to deal with the economic slowdown.

Electronic parts giant Hon Hai also rose, advancing 1.9 percent.

Construction shares topped the session's gainers for the second straight day, advancing more than 3 percent with real estate developer Farglory up more than 2 percent.

"Warming ties with China and a stronger Taiwan dollar have fuelled gains in asset-related shares," said Deng.


Source: Reuters

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