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Taiwan stocks near 16-mth high, tech shares support

Published: 19 Oct 2009 18:36:59 PST

* Tech shares up on market-beating results of Apple Inc

* LCDs up on news of Corning's Taiwan production disruption

* Shares of PC vendors extend gains ahead of Windows 7 launch (Updates indexes, adds quotes, details)

TAIPEI, Oct 20 - Taiwan stocks rose 0.59 percent to their highest intraday level in nearly 16 months on Tuesday, with Apple suppliers such as Hon Hai rising after the U.S. tech giant reported market-beating results.

As of 0134 GMT, the main TAIEX share index had risen 41.93 points to 7,793.25, the highest intraday level since June 26, 2008.

Technology shares extended gains from the previous session after Apple Inc posted stronger-than-expected quarterly results. The broader electronics sub-index climbed 0.44 percent, with Hon Hai, a key supplier to Apple, rising 0.5 percent.

"Electronics shares in Taiwan got a renewed lift from upbeat earnings from companies such as Apple, and Apple's result reignited hopes that demand for tech gadgets are picking up around the world," said Tom Tang, a vice president at Masterlink Investment Advisory.

LCD makers also gained, with AU Optronics and Chi Mei Optoelectronics rising 1.86 percent and 0.87 percent, respectively.

The gains come as Corning Inc said on Monday a weekend power disruption at its Taiwan plant will hurt glass production in the fourth quarter..

However, their gains underperformed the 4.08 percent rally in South Koean peer LG Display.

Taiwan President Ma Ying-jeou said on Monday the island has not considered allowing its LCD firms to make large panels on the mainland for now.

TSMC and UMC, the world's largest two contract chip makers, rose 0.98 percent and 2.72 percent after Texas Instruments Inc posted quarterly profit and revenue that exceeded Wall Street's estimates on better-than-expected chip demand.

PC shares continued their rally from the previous session on hopes the launch of Windows 7 operating system could boost sales.

Acer and Asustek rose 0.47 percent and 3.28 percent, respectively.