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Techs push Taiwan stocks to 1-mth intraday high

Published: 08 Jul 2009 18:57:06 PST

* Tech shares gain on weak T$ and positive June sales

* UMC gains before June sales later on Thursday

* Financial and tourism shares surge on China hopes (Updates indexes, add quotes, details)

TAIPEI, July 9 - Taiwan stocks rose 1.6 percent on Thursday, with shares of Quanta Computer leading gains in the tech sector after the company's second-quarter shipments surpassed its own forecast.

The main TAIEX share index jumped 106.48 points to 6,774.62 as of 0217 GMT, reaching an intraday high not seen since June 8. Turnover was modest at T$64.7 million.

"Without a doubt, tech shares boosted Taiwan's stock market today with their outstanding June sales figures," said Andrew Deng, an assistant vice president at Taiwan International Securites Corp.

"And also, Taiwan's central bank has been keeping the local currency weak to help revive the island's exports."

The electronics sub-index rose 1.49 percent, with TSMC and UMC, the world's two biggest contract chip makers, rising 2.02 percent and 0.86 percent ahead of their June sales reports.

Quanta Computer, the world's largest contract laptop PC, rose 1.37 percent after it reported better-than-expected second-quarter shipments on new orders from PC brands ahead of the peak holiday season.

Acer Inc, the world's No.3 PC brand and Asustek Computer Inc, the world's top motherboard maker, rose 2.66 percent and 1.89 percent, respectively, after Google Inc announced its plan to launch a new operating system against Microsoft Corp for personal computers.

The broad computer and peripheral sub-index rose 2.03 percent.

AU Optronics, the world's No.3 LCD maker, jumped 3.64 percent, leading the broader optoelectronics sub-index up 2.67 percent.

Financial shares and tourism shares were the market's two biggest winners, with the banking and insurance sub-index rising 3.61 percent and the tourism sub-index rising 2.74 percent, amid Taiwan's warming trade ties with China.


Source: Reuters

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