Market Update 11/28

14:11 28Nov2008 RTRS-Taiwan stocks end at 2-wk high as DRAM makers surge

* TSMC, UMC mixed after plans to cut cost
* AU, Chi Mei mixed on news Samsung will buy fewer panels
* Compal dips despite report of production in Vietnam

(Adds details, quote)
TAIPEI, Nov 28 (Reuters) - Taiwan stocks rose 0.15 percent on
Friday to a more than two-week closing high, as DRAM makers such
as Powerchip <5346.TWO> surged after saying Japanese rival Elpida
would boost its stake in their joint venture.
The main TAIEX share index <.TWII> ended 6.74 points higher
at 4,460.49, its highest close since Nov. 12, after see-sawing in
and out of positive territory throughout the session.
DRAM chip makers surged, with Powerchip and Nanya Technology
<2408.TW> both up by their 7 percent daily limit, helping lift
the electronics sub-index <.TELI> by 0.63 percent.
Powerchip's rally came after the company said Japanese rival
Elpida <6665.T> would boost its stake in their joint venture
Rexchip to 52 percent. [ID:nTP167384]
However, market sentiment remained cautious despite the
government partially lifting a ban on short-selling, with
turnover thin at T$57.8 billion ($1.7 billion) compared to
Thursday's T$62 billion.
"Lifting the ban will only give limited support to the
market, because the ban wasn't the main cause of thin trading,"
said John Chiu, a vice president of Fuh Hwa Securities Investment
Trust.
"Trading is thin simply because investors see the market will
continue to worsen and there is still uncertainty about the
outlook for the global economy," he said.
On Thursday, Taiwan's top financial regulator said it would
allow short-selling on shares which are traded higher from the
previous session's closing prices. [ID:nTP10049]
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's contract chip maker, declined 0.24 percent
but smaller rival United Microelectronics Corp (UMC) <2303.TW>
rose 2.66 percent.
Industry sources said on Friday TSMC and UMC <2303.TW> were
preparing to cut costs by up to 20 percent, as their industry
heads into a sharp downturn. [ID:nTP139342]

HOT STOCKS
-- Compal Electronics <2324.TW>, the world's No.2 contract
laptop PC maker, declined 0.58 percent even after a Vietnamese
newspaper said the Taiwan firm planned to start production in
Vietnam in the first quarter of 2009. [ID:nHAN347592]

-- Taishin Financial <2887.TW>, Taiwan's No. 3 financial
holding firm, gained 0.58 percent after the company said on
Thursday it planned to raise T$7 billion through a rights issue
to help improve its financial structure. [ID:nTP176049]

-- AU Optronics <2409.TW> gained 0.24 percent but smaller
rival Chi Mei Optoelectronics <3009.TW> dropped 1.62 percent.
Their mixed performance came after a local newspaper reported
senior managers from South Korea's Samsung <005930.KS> had
visited major LCD makers in Taiwan to tell them the Korean firm
would buy fewer panels from Taiwan due to the global economic
slowdown.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 0.15 percent
Close on day 4,460.49
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.3)
(Reporting by Gina Chang; Editing by Nick Macfie)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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Friday, 28 November 2008 14:11:13RTRS [nTP39236] {EN}ENDS

twd 27 nov

16:22 27Nov2008 RTRS-Taiwan dollar hits 1-½ week high on exporter purchases

(Adds details, quotes)
TAIPEI, Nov 27 (Reuters) - The Taiwan dollar firmed to a 1-½ week high on Thursday, boosted by exporter purchases and big domestic stock market gains, and supported by investors pulling back on U.S. dollar buying ahead of the Thanksgiving holiday.
The Taiwan dollar hit a high of T$33.167 to the U.S. dollar during early trade, but erased most of those gains to close at T$33.302, its highest finish since Nov. 19 and up slightly from Wednesday's close of T$33.306.
It was also the Taiwan dollar's third consecutive daily rise.
Volume on the main Taipei Forex Inc. exchange was thin at $788 million, lower than Wednesday's $997 million, and well off the average billion dollar mark seen on many trading days.
"The Taiwan dollar was supported by the stock market's rise today, but volume is quite low so we really can't say it's very significant," a dealer in Taipei said.
"Exporters were also buying Taiwan dollars but this was offset by intervention by the central bank."
Exporters, who prefer a weaker Taiwan dollar, usually convert their U.S. dollar earnings to the local currency near the end of the month for cash needs at home.
Thanksgiving weekend in the United States also contributed to lower trading volume, as investors were unable to see a clear direction from the U.S. dollar.
"The market won't be open tonight, so people stayed away because we don't know what's going to happen between now and Monday," said another dealer.
The 4.26 percent rise in the TAIEX share index <.TWII> also helped to boost the Taiwan dollar somewhat, although gains in the currency were limited by potential fears of a lengthened economic crisis.
"I don't think anyone was expecting the stock market or the dollar to rise as fast as they have, so it's all looking a little ridiculous," the second dealer said, adding he expected the Taiwan dollar to find support at about T$33.150.
Six-month NDFs were quoted at -0.210/-0.150 compared to Wednesday's close of -0.220/-0.150, meaning the market saw the Taiwan dollar weakening more than previously expected.
On the smaller Cosmos exchange , the Taiwan dollar rose to T$33.295 to the U.S. dollar from Wednesday's close of T$33.320.
(Reporting by Kelvin Soh and Lin Miao-jung; Editing by Anne Marie Roantree)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:kelvin.soh.reuters.com@reuters.net))

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Thursday, 27 November 2008 16:22:13RTRS [nTP167873] {EN}ENDS

TW stock 27 Nov.

14:24 27Nov2008 RTRS-Taiwan stocks end up 4 percent as Hon Hai surges

* Hon Hai limit-up on rating upgrade by JP Morgan
* Acer and Asustek gain despite target price cut
* DRAM makers surge after Inotera lending plan

(Adds details, quote)
TAIPEI, Nov 27 (Reuters) - Taiwan stocks rose 4.26 percent on
Thursday to an over two-week closing high, as gains on Wall
Street fuelled widespread buying, with Hon Hai <2317.TW> leading
the rally after JP Morgan upgraded its rating on the gear maker.
The main TAIEX share index <.TWII> ended up 181.95 points at
4,453.75, gaining for a third session and posting its highest
close since Nov. 12. Turnover was light at T$62 billion ($1.9
billion), but higher than T$45 billion a day earlier.
"The market has dropped a lot for a long time (so) it's
likely that its rebound in recent sessions will be sustained and
that it will rise to as high as 5,500 points near the end of the
year," said Nigel Lee, a portfolio manager of National Investment
Trust.
Lee expected the market to trade between 4,300-4,600 points
next week.
Shares of Hon Hai Precision, Taiwan's largest electronics
parts maker, surged by their 7 percent daily limit after JP
Morgan upgraded the Taiwan firm to "neutral" from "underweight"
on Thursday. [ID:nTP160613]
Acer <2353.TW>, the world's No.3 PC seller, and smaller rival
Asustek <2357.TW> jumped 3.74 percent and 4.54 percent,
respectively, tracking a U.S. rally and ignoring a Morgan Stanley
target price cut due to a dismal demand outlook. [ID:nTP107122]
The electronics sub-index <.TELI> gained 4.55 percent.
DRAM chip makers also outperformed, with Inotera Memories
<3474.TW> and Powerchip <5346.TWO> both going limit-up.
Inotera rallied for a second day after the company and sister
firm Nan Ya Plastics <1303.TW> said they would lend a combined
$285 million to struggling U.S. DRAM maker Micron Technologies
. [ID:nHKG88202]
Powerchip also got a boost from news that Japanese computer
memory maker Elpida Memory <6665.T> had decided to lift its stake
in its joint venture with Powerchip. [ID:nTPU000895]
Some investors were expecting Taiwan's central bank to cut
interest rates after the Chinese government on Wednesday
announced its most aggressive rate reduction in a decade.
[ID:nN26340386]
"The central bank will likely lower interest rates further,
especially after the government predicted negative economic
growth for Taiwan in the next three quarters," said Bevan Yeh, a
senior fund manager of Prudential Financial Securities Investment
Trust.

HOT STOCKS
-- Smartphone maker HTC Corp <2498.TW> surged 6.03 percent,
despite Citi cutting its 2009 earnings forecast for the Taiwan
company. [ID:nTP131052]

-- Largan Precision <3008.TW>, a maker of lenses for mobile
phones and other electronic products, fell 2.27 percent, after
the firm cut its revenue guidance for the current quarter.
[ID:nTP126833]

-- EnTie Bank's <2849.TW> ended limit up on news that the
firm's former owners, the Hung Tai Group, are in talks with
Longreach Group to take back control of the bank at the
price of T$5 a share. [ID:nTP44417]

-- China Steel Corp <2002.TW>, Taiwan's top steel maker,
gained 3.72 percent even after the firm said it would cut
domestic prices of steel products in the first quarter.
[ID:nTP114255]

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 4.26 percent
Close on day 4,453.75
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.2)
(Reporting by Gina Chang; Editing by Jonathan Hopfner)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:

TW market 1126

14:25 26Nov2008 RTRS-Taiwan stocks hit fresh 1-wk high as builders rise

* Construction shares rally on government plans
* Inotera limit-up amid Micron lending plans
* Asustek tumbles after Morgan Stanley downgrade

(Adds details, quote)
TAIPEI, Nov 26 (Reuters) - Taiwan stocks rose 0.12 percent on
Wednesday to a one-week closing high, as construction shares such
as Cathay Real Estate <2501.TW> rallied over the government's
plans to boost the sagging real estate industry.
The main TAIEX share index <.TWII> ended up 5.31 points at
4,271.80, giving up much of its gains from early in the session,
with the construction sub-index <.TCOI> jumping for a second day
with a 2.56 percent gain.
Turnover was light at T$45 billion ($1.4 billion), down from
Tuesday's T$57 billion.
"I think this plan (to help the real estate industry) is very
good. It shows the government's concern over the housing market,"
said Tu Jin-lung, chairman of Grand Cathay Investment Services.
The Taiwan government said on Tuesday it was crafting a
package of measures aimed at boosting the local real estate
industry, which has slumped as the economy gets drawn into the
global financial crisis. [ID:nTP69445]
The plan came in line with U.S. government programs on
Tuesday aimed at helping consumers to obtain loans for homes,
cars and credit cards. [ID:nN25276977]
Cathay Real Estate, a unit of Taiwan's top financial holding
firm Cathay Financial <2882.TW>, jumped by its daily 7 percent
limit. Huaku <2548.TW>, a major real estate developer in Taipei,
gained 4.89 percent.
Tu said he expected construction shares to continue their
gains through the end of the year.
In the DRAM industry, Inotera Memories <3474.TW> ended limit
up after it said it and sister firm Nan Ya Plastics <1303.TW>
would lend $285 million to DRAM joint venture partner Micron
Technologies . [ID:nHKG88202]
"This lending plan will only have a short-lived effect," said
Tu.
"The DRAM industry is in very bad shape and we won't see DRAM
makers improve their situation unless one of them fails. That
will help the oversupply problem," said Tu.
Adding gloom to the DRAM sector, electronic components
research firm DRAMexchange said prices for DRAM memory chips hit
new lows this month as the market remained over-supplied and PC
demand slowed. [ID:nLP414513]
The semiconductor sub-index <.TSII> fell 0.34 percent and the
electronics sub-index <.TELI> declined 0.50 percent.

HOT STOCKS
-- PC vendor Acer <2353.TW> finished flat and smaller rival
Asustek Computer <2357.TW> fell 1.49 percent after Morgan Stanley
cut its target price for Acer and downgraded its rating on
Asustek. [ID:nTP107122]
-- China Steel <2002.TW>, Taiwan's largest steel maker,
declined 2.49 percent after the firm said Tuesday it planned to
reduce output next year. [ID:nTP76792]
Minutes after the market closed, China Steel said it would
cut prices by an average of 20-25 percent in the first quarter of
2009 from the fourth quarter, its first such cut in almost three
years. [ID:nTPU000892]
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 0.12 percent
Close on day 4,271.80
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.2)
(Reporting by Gina Chang; Editing by Jonathan Hopfner)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS]

Taiwan wants China pandas to do more than just cuddle.

15:58 25Nov2008 RTRS-Taiwan wants China pandas to do more than just cuddle

TAIPEI, Nov 25 (Reuters) - A Taiwan zoo will try to mate a pair of giant pandas from China and may return any cub for tender loving care, a zoo official said on Tuesday, another twist in efforts to improve ties between the two political rivals.
Taipei Municipal Zoo will try over the next two years to mate Tuan Tuan and Yuan Yuan, whose names said together mean "unite", to produce a cub or twins, zoo research officer Chin Shih-chien said.
"We should be breeding pandas," Chin said. "It's something we're supposed to do proactively under international agreements."
China has seen self-ruled Taiwan as part of its territory rather than as a separate country since the island broke away from Mao Zedong's Communists amid civil war in 1949. Beijing has threatened to take Taiwan by force, if necessary.
But since taking office in May, China-friendly Taiwan President Ma Ying-jeou has resumed formal dialogue with Beijing, contributing to a thaw in relations not seen in 60 years.
China offered the two pandas as a goodwill gift in 2006 and they are expected to arrive next month.
The zoo might return the cub or twins to China for expert care, Chin said, though that decision has not been written down in black and white.
About 1,000 of the endangered animals live in the wild bamboo forests of central and western China. Taiwan will donate a native deer and goat in exchange for the pandas.
(Reporting by Ralph Jennings; Editing by Nick Macfie)
((ralph.jennings@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: ralph.jennings.reuters.com@reuters.net)) Keywords: TAIWAN PANDAS/

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Tuesday, 25 November 2008 15:58:54RTRS [nTP26515] {EN}ENDS

TW market 1125

14:19 25Nov2008 RTRS-Taiwan stocks, led by TSMC, hit week-closing high

* Reports of cross-strait MOU boost financial issues
* Chinatrust limit-up after ex-vice chmn returns to Taiwan
* Hon Hai gains despite downgrade
(Adds details, quote)
TAIPEI, Nov 25 (Reuters) - Taiwan stocks rose 2.55 percent on
Tuesday to close at their highest level in a week, led by
heavyweight TSMC <2330.TW>, as a Wall Street rally eased investor
worries about weak technology exports to the United States.
Banking shares also rallied on hopes a cross-strait agreement
might brighten the industry's outlook.
The main TAIEX share index <.TWII> ended 105.95 points higher
at 4,266.49, giving up earlier gains and ending at its strongest
finish since Nov 19.
But the market lagged some of its regional peers as caution
remained over the island's economic outlook after Taiwan on
Monday posted dismal October export orders and jobless data.
Turnover remained thin at T$57 billion ($1.7 billion), but
higher than T$45.8 billion a day earlier.
"Though the market rose today, its gain was smaller than
expected after Wall Street's steep rise. It showed that the
market remained conservative," said Alex Huang, vice president of
Mega Securities.
A Wall Street rally propped up the electronics sub-index
<.TELI> by 3.89 percent, with Taiwan Semiconductor Manufacturing
Co (TSMC) , the world's top chip maker and the day's most
active share by turnover, jumping by its daily 7 percent limit.
The financial sub-index <.TFNI> surged 4.65 percent, as it
got a boost from local media reports that said Taiwan's top
financial regulators would submit a draft memorandum of
understanding (MOU) on the financial industry during their visit
to Beijing this week. [ID:nTP50137]
"It's a long-term positive factor as there will be more
investments in Taiwan, but it's hard to say if the news can keep
propping up gains in financial stocks in the short term. The
market is very volatile now," said Chang.
Chinatrust Financial <2891.TW>, the island's top credit card
issuer, jumped by its 7 percent limit for the second session.
The rally came after Jeffrey Koo Jr., the firm's former vice
chairman, returned to Taiwan from Japan to be questioned by
prosecutors as oart of a graft probe. [ID:nTP56263]
Despite the gains, concerns over the island's economy
lingered after Taiwan's export orders posted their biggest fall
in seven years in October. Taiwan also said the October
seasonally adjusted jobless rate rose to 4.29 percent, the
highest since Feb. 2005. [ID:nTP24985] [ID:nTPU000886]

HOT STOCKS
-- The construction sub-index <.TCOI>, the biggest winner of
the day, jumped 4.83 percent after a local newspaper said Taiwan
Premier Liu Chao-shiuan would meet representatives from the real
estate industry to discuss measures to boost the sluggish sector.

-- Hon Hai Precision <2317.TW>, Taiwan's top electronics gear
maker, also followed strong gains on Wall Street and advanced
4.38 percent.
Hon Hai's rise came even after Deutsche Bank cut its target
price on Hon Hai to T$65 from T$145, saying deteriorating demand
would hurt sales. [ID:nTP21141]

-- China Steel <2002.TW>, Taiwan's top steel maker, fell 1.56
percent on media reports the firm would not stop production
unless necessary, despite falling steel prices.

-- Waterland Financial <2889.TW> gained 4.95 percent. Chinese
banks have expressed interest in Waterland's plans to raise T$550
million by selling a 20 percent stake in the company, if the
cross-strait financial MOU is signed, a local newspaper reported.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 2.55 percent
Close on day 4,266.49
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.4)
(Reporting by Gina Chang; Editing by Nick Macfie)
(gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging: gina.chang.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N]

TW market 1124

14:41 24Nov2008 RTRS-Taiwan stocks fall on tech shares, but HTC jumps

* HTC up on expectations of double-digit growth next year
* Financials pare losses on China MOU proposal
* Powerchip extends rally

(Adds details, quote)
TAIPEI, Nov 24 (Reuters) - Taiwan stocks fell 0.25 percent on
Monday as technology shares declined ahead of data due out later
in the day that is expected to be gloomy, but HTC <2498.TW>
climbed after forecasting double-digit revenue growth next year.
The main TAIEX share index <.TWII> ended down 10.56 points at
4,160.54, recouping some earlier losses, as the government
stepped in to prop up the market and some investors searched for
bargains, analysts said.
Turnover was light at T$45.8 billion ($1.4 billion), lower
than Friday's T$51.8 billion.
Investors largely ignored a Wall Street rally as they took
cues from losses in other Asian stocks. There was also some
market caution due to expectations of poor October jobless rate
and export orders data that will be released later in the day.
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's top contract chip maker, dropped 3.12
percent, dragging the electronics sub-index <.TELI> 1.02 percent
lower.
"Institutional investors were probably disappointed that the
government didn't lift a ban on short-selling," said Kevin Yang,
president of Paradigm Asset Management.
"Though there's no guarantee that the market will rise if the
ban's lifted, liquidity will become better and gains will be
stronger when the market rebounds," said Yang, adding he expected
the TAIEX to trade between 3,800-4,200 points this week.
The market had anticipated that the government might lift a
ban on short-selling this week, as trade volumes have been thin
due to tight liquidity. The government has not yet decided
whether to lift the ban owing to uncertainties in the global
economy.
However, the market pared some losses near the end of trading
as the government boosted sagging shares and investors scooped
beaten-down financial shares, said Michael On, a managing
director of Beyond Asset Management.
The financial sub-index <.TFNI> rose 0.11 percent, with
Chinatrust Financial <2891.TW>, Taiwan's top credit card issuer,
jumping by its daily 7 percent limit.
The rally came after Jeffrey Koo, ex-vice chairman of
Chinatrust, returned Taiwan from Japan on Monday to be questioned
by prosecutors in a corruption case involving former President
Chen Shui-bian.
A reported government plan to finalise a memorandum of
understanding (MOU) on opening up Taiwan's and China's financial
industries to each other also provided support to sagging
financial stocks.
Local media reported that the the government will submit its
version of the MOU to Chinese officials when they visit Beijing
this week.
Smartphone maker HTC Corp also bucked the downward trend to
rise 3.45 percent after the company predicted revenue would grow
by a double-digit percentage next year as feature-packed mobile
phones gained popularity. [ID:nTPU000880]
Powerchip <5346.TWO>, Taiwan's top DRAM chip maker, rallied
for a second session, finishing limit up after the DRAM maker
said on Friday it was seeking a closer partnership with Elpida
<6665.T>. [ID:nTP21508]

HOT STOCKS
-- Chang Hwa Bank <2801.TW> ended flat and Taishin Financial
<2887.TW> fell 4.33 percent.
Local media reported that the government planned to raise its
stake in Chang Hwa and asked Taishin to unload its 22.5 percent
stake in the lender.

-- China Steel <2002.TW>, Taiwan's biggest steelmaker, fell
1.75 percent after a local newspaper reported the firm would
perform its annual maintenance ahead of schedule due to weak
global demand.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.25 percent
Close on day 4,160.54
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.4)
(Reporting by Gina Chang; Editing by Jonathan Hopfner)
(gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging: gina.chang.reuters.com@reuters.net)
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR

TWD 21 Nov

16:43 21Nov2008 RTRS-Taiwan dollar off 1-mth low on local stock rally

(Updates to close)
TAIPEI, Nov 21 (Reuters) - The Taiwan dollar reversed its early course to end higher on Friday, as market sentiment was boosted by a strong rebound in domestic stocks, ignoring dismal economic figures that sparked recession fears.
The Taiwan dollar hit a low of T$33.550 to the U.S. dollar in early trade, its weakest intraday level since Oct. 28, but pulled back after the lunch break to end at T$33.388, higher than Thursday's close of T$33.405.
Volume on the main Taipei Forex Inc exchange was moderate at $976 million, compared with $1.078 billion a day earlier.
"Foreign banks were buying the U.S. dollar at first, but turned to sell the greenback after the stock market rebounded," said a dealer at a local bank.
Taiwan stocks <.TWII> recouped sharp losses in morning trade to close 1.98 percent higher on Friday, as investors scoured the market for beaten down stocks like Hon Hai <2317.TW> and Asustek <2357.TW>.
Positive sentiment in the stock market offset weak GDP figures announced by the government on Thursday, which showed Taiwan's economy unexpectedly shrank in the third quarter from a year earlier, the biggest drop in seven years. [ID:nTP71548]
The Taiwan dollar was further supported by exporters' deals and central bank intervention, dealers said. Exporters prefer a weaker dollar so they can convert U.S. dollar earnings to more of the local currency.
The Taiwan dollar, which is expected to be on a downward trend through the end of the year, may have limited losses next week as more exporters will buy the local currency for cash needs at home near the end of the month, the first dealer said.
In the non-deliverable forwards market, six-month NDFs widened to -0.190/-0.140 from -0.110/-0.060 in the previous session, implying the Taiwan dollar will likely firm by a larger degree in half a year.
On the smaller Cosmos exchange , the Taiwan dollar firmed to T$33.390 to the U.S. dollar, from the previous close of T$33.407.
(Reporting by Gina Chang and Lin Miao-jung; Editing by Jonathan Hopfner)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: gina.chang.thomsonreuters.com@reuters.net))
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Friday, 21 November 2008 16:43:51RTRS [nTP7550] {EN}ENDS

TW market 1121

14:33 21Nov2008 RTRS-Techs lead Taiwan stock rebound; Hon Hai limit up

* Hon Hai and Asustek limit up as investors look for bargains
* Chi Mei limit up on share buyback
* Powerchip gains more than 6 percent on merger talk

(Adds details, quotes)
By Kelvin Soh
TAIPEI, Nov 21 (Reuters) - Taiwan stocks closed 1.98 percent
higher Friday, as investors scoured the market for beaten down
stocks like Hon Hai <2317.TW> and Asustek <2357.TW>, even as the
economy unexpectedly shrank in the third quarter.
The main TAIEX share index <.TWII> closed 81.17 points higher
at 4,171.10, after a wave of selling that saw it breach the key
4,000 psychological barrier and hit a fresh six-year low in
morning trade.
It was also the first time the market has closed in positive
territory this week.
"The market has fallen by a lot in the past number of days
and it's about time there was some sort of rebound," said Kevin
Chung, a fund manager at Jih Sun Securities.
"It doesn't fall in a straight line. We usually see it
falling by about 100 to 200 points, rising by a little, then
falling back down again."
Turnover stood at T$51.8 billion ($1.55 billion), the highest
this week.
"There's been a bit of an overreaction in the kind of falls
seen this past week," said Alvin Teng, a research manager at
Sinopac Securities.
"The market could rise next week on the back of a technical
rebound and if there are no fundamental changes in the U.S.
market within the next couple of days."
Hon Hai and Asustek both shrugged off fears of dampened
consumer demand amid the global financial crisis to rise by their
daily 7 percent limit, having closed at multi-year lows the
previous session.
Other tech shares joined in the rally with top LCD maker AU
Optronics <2409.TW> and contract PC maker Wistron <3231.TW> both
climbing by more than 6 percent.
Contract laptop PC makers Quanta Computer <2382.TW> and
Compal Electronics <2324.TW> also reversed early losses to gain
more than 2 percent each after Dell announced strong
quarterly results.
LCD maker Chi Mei Optoelectronics <3009.TW> rose by its 7
percent daily limit after the company said it would spend up to
T$6 billion on a share buyback. [ID:nTP8249]
Top DRAM maker Powerchip <5346.TWO> also rose despite its
weak financial results in the past few quarters, climbing 6.61
percent after it said it could consider a merger with Japan's
Elpida Memory <6665.T>. [ID:nTP5504]
On the down side, the plastics sub-index <.TPLI> led losses
to close 5.14 percent lower after Goldman Sachs put out a
research report downgrading Formosa Plastics <1301.TW>, Nanya
Plastics <1303.TW> and Formosa Chemicals and Fiber Corp <1326.TW>
to a sell.
A ban on short-selling to stop market volatility by the
Financial Supervisory Commission has also hit trading volume,
some analysts say, with some suggesting they expect the ban to be
lifted this weekend instead of the original year-end deadline.
"That's really the biggest issue that could affect the market
next week," said Bevan Yeh, a fund manager at Prudential
Securities Investment Trust.
"If the ban is lifted, there could be some fear of the market
sliding further, but this is good in the long run because it
allows things to run their natural course."
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 1.98 percent
Close on day 4,171.10
2008 intraday high 9,309.95
2008 intraday low 4,089.93
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Editing by Jonathan Hopfner)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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Friday, 21 November 2008 14:33:44RTRS [nTP22303] {EN}ENDS

TWD 20 Nov

17:04 20Nov2008 RTRS-Taiwan dlr at 3-wk low ahead of GDP numbers

(Updates to close)
TAIPEI, Nov 20 (Reuters) - The Taiwan dollar fell on Thursday to a more than three-week closing low as a drop in the stock market dampened sentiment and triggered foreign fund outflows ahead of the official release of dismal GDP figures.
The Taiwan dollar, which fell for a fourth straight session, hit a low of T$33.439 to the U.S. dollar in late trade, but recouped some losses to end at T$33.405, its lowest close since Oct. 28. It finished at T$33.265 in the previous session.
Volume on the main Taipei Forex Inc exchange was moderate at $1.078 billion, twice the $532 million total from a day earlier.
"Losses on Wall Street and local stocks all helped push the Taiwan dollar sharply lower," said a dealer at a local bank.
"Foreign banks bought a lot of U.S. dollars and there probably were fund outflows," he said, adding that the local currency could go as low as T$33.8 next week if global stock markets continue to fare badly.
Taiwan stocks <.TWII> weighed on the currency, ending down 4.53 percent on Thursday to a more than six-year closing low.
Foreign institutions sold a net T$6 billion ($180 million) worth of Taiwan shares on Thursday, bringing their net sales to a total of T$516 billion so far since June.
The market is expected to react on Friday to reports from Taiwan statistics agency sources that GDP growth was down 1.02 percent in the third quarter.
"The market in general thinks the figures will be bad, and if they are worse than expectations, the Taiwan dollar will trade lower tomorrow," said the dealer.
"The central bank could probably further cut the interest rates by about 1 percent, but it's still not certain what measure the central bank will take before the figures are out."
Taiwan's benchmark discount rate stands at 2.75 percent. The central bank unexpectedly cut the rate by 25 basis points earlier in November, its fourth cut in just over a month.
In the non-deliverable forwards market, six-month NDFs were quoted at -0.110/-0.060, narrower than -0.180/-0.130 in the previous session. That indicated the Taiwan dollar was likely to strengthen by a smaller margin in half a year.
However, falls in the Taiwan dollar were limited as exporters bought the local currency at around T$33.4 and the central bank stepped in to prevent the Taiwan dollar from changing dramatically.
Exporters prefer a weaker Taiwan dollar so they can exchange U.S. dollar earnings to more of the local currency.
The Taiwan dollar has fallen about 11 percent since rallying to a 10-1/2-year high in late March, when investors bet on improving cross-Strait relations under China-friendly President Ma Ying-jeou.
On the smaller Cosmos exchange , the Taiwan dollar softened to T$33.407 to the U.S. dollar, from the previous close of T$33.258.
(Reporting by Gina Chang and Lin Miao-jung; Editing By Keiron Henderson)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net))
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Thursday, 20 November 2008 17:04:19RTRS [nTP336507] {EN}ENDS

TW GDP 2008

16:37 20Nov2008 RTRS-TAIWAN Q3 GDP -1.02 PCT Y/Y -- STATS AGENCY SOURCE; REUTERS POLL FORECAST +1.0 PCT Y/Y
16:38 20Nov2008 RTRS-TAIWAN SEES 2008 GDP +1.78 PCT Y/Y -- STATS AGENCY SOURCE; PREVIOUS FORECAST +4.30 PCT Y/Y
16:38 20Nov2008 RTRS-TAIWAN SEES 2009 GDP +2.12 PCT Y/Y -- STATS AGENCY SOURCE; PREVIOUS FORECAST +5.08 PCT Y/Y
16:46 20Nov2008 RTRS-Taiwan's GDP contracts 1.02 percent in Q3 -sources

TAIPEI, Nov 20 (Reuters) - Taiwan's economy contracted by 1.02 percent in the third quarter from a year earlier, missing expectations and posting the first contraction since 2003, statistics agency sources said on Thursday.
The third-quarter contraction compared with a median forecast for 1.0 percent growth in a Reuters poll.
The statistics agency now forecasts that 2008 GDP will grow at 1.78 percent, compared with a previous forecast for 4.30 percent growth, the sources said.
It forecast that 2009 GDP would grow at 2.12 percent, versus a previous forecast for 5.08 percent growth.
(Reporting by Lee Chyen Yee and Jeanny Kao; Editing by Ken Wills)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net)) Keywords: TAIWAN ECONOMY/GDP

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Thursday, 20 November 2008 16:37:32RTRS [nTPU000875] {EN}ENDS

TW market 1120

14:28 20Nov2008 RTRS-Taiwan stocks at 6-yr closing low despite govt aid

* Financials fall amid weakening economic outlook
* Taishin reverses gains even after talk of $100 mln boost
* LCD makers fall after Corning warning

(Adds details, quotes)
By Kelvin Soh
TAIPEI, Nov 20 (Reuters) - Taiwan stocks finished down 4.53
percent at a more than six-year closing low on Thursday as
financials such as Yuanta Financial <2885.TW> slid, even as the
government announced a slew of measures to help the economy.
The main TAIEX share index <.TWII> ended 194.16 points lower
at 4,089.93, a closing level not seen since October 2002 and a
new 52-week intraday low. Yuanta Financial closed 7 percent
lower.
Turnover was thin at T$45 billion ($1.34 billion) as
investors stayed away from the falling market and waited for
clearer direction.
"I'm not very optimistic now, and see the TAIEX dropping to
about 3,800," said Michael On, managing director of Beyond Asset
Management.
"I think all eyes are on the GDP figures and if that falls,
it's going to drag the market down with it."
Many economists expect the government to report after the
market closes that Taiwan's GDP growth in the third quarter fell
to its slowest pace in five years.
Financials led the day's losses, with the banking and
insurance sub-index <.TFNI> closing 5.82 percent lower on fears
that weak economic growth would hit the overall financial
industry.
Leading financial holding companies Shin Kong Financial
<2888.TW>, Cathay Financial <2882.TW> and Fubon Financial
<2881.TW> all closed more than 6 percent lower.
Taishin Financial <2887.TW>, which the day before had risen
by its daily 7 percent limit on local media reports that a
Chinese bank would invest $100 million in the company, also
joined in the free-fall to close 1.11 percent down.
"It feels like we're destined to set a new low soon," said
Andrew Teng, an analyst at Taiwan International Securities.
"The overall atmosphere is really bad and we're looking at
all the heavyweights going down as well. There's no major push
factor for the market to climb."
Taiwan's tech firms also joined in the downward spiral, with
the semiconductor sub-index <.TSII> down 4.48 percent after
research firm iSuppli said global semiconductor revenue was
likely to fall 2 percent this year. [ID:nSEO354566]
Tech bellwether and top contract chip maker TSMC <2330.TW>
closed 3.16 percent lower, while its smaller rival UMC <2303.TW>
fell by the daily limit of 7 percent.
Taiwan's tech industry produces much of the world's
electronics, including more than half of all laptop PCs, and has
been badly hit by slumping consumer demand amid the global
economic crisis.
LCD makers reversed Wednesday's gains as global specialty
glass maker Corning , which makes glass for LCD
televisions and computers, said demand had slowed more than
anticipated. [ID:nN183315]
Top LCD maker AU Optronics <2409.TW> was down 4.64 percent,
while its smaller rival Chi Mei Optoelectronics <3009.TW> shed
5.85 percent.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -4.53 percent
Close on day 4,089.93
2008 intraday high 9,309.95
2008 intraday low 4,089.93
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Editing by Jonathan Hopfner)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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Thursday, 20 November 2008 14:28:11RTRS [nTP329102] {EN}ENDS

TW market 1119 test

16:40 19Nov2008 RTRS-Taiwan dollar at 3-wk low due to fund outflows

(Updates to close)
TAIPEI, Nov 19 (Reuters) - The Taiwan dollar hit a three-week closing low on Wednesday in thin trade, pressured by foreign fund outflows due to a grim economic outlook and after the central bank's comments on interest rates.
The Taiwan dollar ended lower at T$33.265 to the U.S. dollar, its weakest finish since Oct. 29 and compared with Tuesday's close of T$33.234.
The Taiwan dollar traded in a narrow range during the session, with few investors willing to trade near the end of the year. Volume on the main Taipei Forex Inc exchange was paltry at $532 million, sharply lower than $793 million a day earlier.
"Big foreign banks bought the U.S. dollars and foreign investors also increased their stock sales," said a dealer in Taipei.
"Trading has been light in the market because banks have started to close their books."
The Taiwan dollar was also weighed by weakness in domestic stocks <.TWII>, which fell 0.49 percent to a fresh five-year closing low on Wednesday, with construction companies down even after the government said it would boost public spending.
Foreign institutions continued selling local stocks, unloading T$9.4 billion ($283 million) worth of Taiwan shares on Wednesday. They have pulled out about T$509 billion from Taiwan's stock market so far since June.
The Taiwan dollar was also pressured by the South Korean won , which fell for a seventh straight session and hit a three-week low against the U.S. dollar. [ID:nSEO349752]
However, exporters' deals helped cushion losses in the Taiwan dollar, dealers said. Exporters prefer a weaker Taiwan dollar because they can change the U.S. dollar earnings to more of the local currency.
Taiwan's central bank said it would adjust interest rates to an appropriate level to ensure financial stability, according to report seen by Reuters on Tuesday, with some dealers expecting rates to fall further. [ID:nTP298139]
"The central bank might cut the interest rate by 25 basis points, but the Taiwan dollar will still be on a downward trend and test as low as T$34 by the end of the year," said the dealer.
In the non-deliverable forwards market, six-month NDFs narrowed to -0.180/-0.130 from -0.200/-0.140 in the previous session. That meant investors saw the Taiwan dollar strengthening by a smaller degree in half a year.
The Taiwan dollar has fallen about 11 percent since hitting a 10-1/2-year high in late March, mainly due to fund outflows amid the global financial crisis.
On the smaller Cosmos exchange , the Taiwan dollar fell to T$33.258 to the U.S. dollar, from the previous close of T$33.223.
(Reporting by Gina Chang and Lin Miao-jung; Editing by Ken Wills)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net))
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Wednesday, 19 November 2008 16:40:33RTRS [nTP351717] {EN}ENDS

TW market 1119

14:31 19Nov2008 RTRS-Taiwan stocks hit 5-yr closing low; builders fall

* Construction down despite public spending plan
* Contract PC makers down even as HP posts strong results
* LCD makers break losing streak after four days of losses
* Taishin limit up on talk of $100 mln boost by China bank

(Adds details, quotes)
By Kelvin Soh
TAIPEI, Nov 19 (Reuters) - Taiwan stocks fell 0.49 percent to
a fresh five-year closing low on Wednesday, with construction
companies such as Huaku <2548.TW> down even after the government
said on Tuesday it would boost public spending.
The main TAIEX share index <.TWII> closed 21.09 points lower
at 4,284.09, a closing level not seen since May 2003. The
construction sub-index <.TCOI> was 2.21 percent lower as Huaku
Development shares slid 6.1 percent.
Turnover was thin at T$48.9 billion ($1.47 billion), similar
to Tuesday, as wary investors stood aside and waited for clearer
guidance before stepping in.
"Government spending is not going to affect developers and
other related companies," said Jack Chang, an analyst at Yuanta
Sec. "Most of their money still comes from real estate, and for
as long as that remains weak, we're not going to see any climb."
Other construction-related companies took a beating, with the
cement sub-index <.TCMI> down 0.53 percent and the steel and iron
sub-index <.TSTI> down 3.37 percent.
"Chinese investments in Taiwan projects may boost the
industry somewhat, but things are not going to get better before
the second half of 2009," Chang said.
Tech shares also slid, including contract laptop PC maker
Compal Electronics <2324.TW>, even after Hewlett-Packard
announced forecast-beating quarterly results.
Taiwan produces much of the world's electronics, including
more than half of all the world's laptop PCs, and many investors
look closely at guidance from top tech vendors when looking to
buy the island's technology shares.
Compal closed more than 6 percent lower as investors chose
instead to focus on weak consumer demand amid the global
financial crisis.
"Although it seems like tech shares are going to fall for a
few more days, there seems to be some sense that there is some
form of a stability returning when you look at shares such as Hon
Hai," said Theresa Chueh, an analyst at Taiwan International Sec.
Hon Hai <2317.TW>, a top electronics parts maker, closed 2.11
percent higher.
LCD makers, which have been reeling on falling prices and
dampened demand for their products, snapped their losing streak
after four consecutive sessions of declines, with the
optoelectronics sub-index <.TOPI> up 3.13 percent.
AU Optronics <2409.TW> was up 6 percent, while smaller rival
Chi Mei Optoelectronics <3009.TW> surged by its daily 7 percent
limit.
Financials also bucked the falling trend, with the banking
and insurance sub-index <.TFNI> climbing 1.14 percent, after
local media reported that China's Bank of Communications
<3328.HK> was thinking of investing $100 million in Taishin
Financial <2887.TW>.
Taishin Financial, the session's second most active issue by
volume, surged to go limit up moments after the market opened and
remained there for the rest of the session.
Other financial stocks also climbed, with shares of leading
financial holding companies Cathay Financial <2882.TW> and Shin
Kong Financial <2888.TW> up about 2.56 percent and 3.08 percent,
respectively.

STOCKS TO WATCH
-- Gintech Energy <3514.TW> closed 3.49 percent down after it
said on Tuesday it would delay construction of a solar plant by
one year due to slowing demand caused by the global economic
slowdown.
Sino-American Silicon Products <5483.TWO> closed 1.79 percent
lower even after saying that it will boost capacity by 40-50
percent next year, amid booming demand for alternative energy.

-- Powerchip <5346.TWO>, Taiwan's top DRAM chip maker,
climbed 2.77 percent after six days of losses after it said it
would not require government assistance to weather the current
downturn.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.49 percent
Close on day 4,284.09
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Reporting by Kelvin Soh, Editing by Keiron Henderson)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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Wednesday, 19 November 2008 14:31:13RTRS [nTP326406] {EN}ENDS

TWD 18 Nov

16:47 18Nov2008 RTRS-Taiwan dollar near 3-wk low due to economic fears

(Updates to close)
TAIPEI, Nov 18 (Reuters) - Taiwan's dollar fell to a near three-week closing low on Tuesday on worries about the local economy as Japan and other countries have tipped into recession, but exporters and the central bank helped limit the fall.
The Taiwan dollar hit a low of T$33.290 to the U.S. dollar, but recouped losses to end at T$33.234, its weakest finish since Oct. 29, still lower than T$33.170 a day earlier.
Volume on the main Taipei Forex Inc exchange was light at $793 million, but higher than Monday's $487 million.
"The performance of local stocks was bad today and foreign banks were buying the U.S. dollar," said a dealer at a local bank.
Concerns about the island's economy dragged local stocks <.TWII> to a more than five-year low on Tuesday, with chip bellwether TSMC <2330.TW> dampening sentiment as it said it would freeze hiring.
Foreign institutions sold a net T$4.3 billion ($129 million) worth of Taiwan stocks on Tuesday, and have unloaded about T$40 billion so far this month.
In the non-deliverable forwards market, six-month NDFs narrowed to -0.200/-0.140 from -0.260/-0.210 in the previous session, implying the Taiwan dollar will likely firm less in half a year.
However, the Taiwan dollar's fall was tempered as exporters purchased the local currency at around T$33.260 and after the central bank stepped in to keep the Taiwan dollar in a narrow range, dealers said.
Exporters usually trade when the Taiwan dollar weakens because they can convert their U.S. dollar earnings to more of the local currency.
Since rallying to a 10-1/2-year high in late March, the Taiwan dollar has since fallen about 11 percent, largely because foreign investors have been pulling out of the local stock market amid a world financial crisis.
On the smaller Cosmos exchange , the Taiwan dollar softened to T$33.223 to the U.S. dollar, from the previous close of T$33.169.
(Reporting by Gina Chang and Jeanny Kao; Editing By Keiron Henderson)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net))

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Tuesday, 18 November 2008 16:47:20RTRS [nTP314548] {EN}ENDS

TW market 1118-2

The department stores sub-index <.TDEI> bucked the broader
market trend to climb 1 percent for a second day, having risen on
expectations of increased domestic consumption as the government
announced it was handing out shopping vouchers. [ID:nTPU000866]
But Taiwan's export-reliant tech companies, which produce
much of the world's electronics, including more than half of all
laptop PCs, are heavily dependant on consumer demand from the
U.S. and Europe, and any slump there could adversely affect them.

TW market 1118

13:32 18Nov2008 RTRS-TAIWAN STOCKS <.TWII> CLOSE DOWN 3.03 PERCENT
13:46 18Nov2008 RTRS-Taiwan stocks close at 5-yr low, LCDs and TSMC fall

(Updates closing indexes)
TAIPEI, Nov 18 (Reuters) - Taiwan stocks fell 3.03 percent to
a more than five-year closing low on Tuesday, hurt by tech shares
after bellwether TSMC <2330.TW> said it would freeze hiring,
while LCD makers extended their slide.
The main TAIEX share index <.TWII> closed 134.62 points lower
at 4,305.18. TSMC was down 5.64 percent, while the
semiconductor sub-index was down 5.68 percent.
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Reporting by Kelvin Soh, Editing by Ken Wills)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:

TWD 17 Nov

16:44 17Nov2008 RTRS-Taiwan dollar falls in thin trade on economic fears

(Updates to close)
TAIPEI, Nov 17 (Reuters) - The Taiwan dollar fell on Monday in extremely thin trade as worries over the island's economy pushed financial markets lower after a G20 summit failed to provide specific steps to prevent further economic slowing.
The Taiwan dollar closed at T$33.170 against the U.S. dollar, down from Friday's close of T$33.079.
Volume on the main Taipei Forex Inc exchange was paltry at $487 million, sharply lower than $725 million in Friday's session.
"There were only a few trades today, probably because it's near the end of the year and investors don't want to build up new positions," said a dealer at a local bank.
"The Taiwan dollar was pressured by the weak performance in the stock market and a falling South Korean won. Foreign banks bought and sold small amounts of the Taiwan dollar."
Taiwan stocks <.TWII> closed 0.29 percent lower on Monday on economic worries as the weekend meeting of the Group of 20 major economies produced a slew of broad agreements but no new concrete measures. [nN16483348]
The Taiwan dollar was further weighed by the South Korean won , which fell against the U.S. dollar on Monday, extending its losing streak to a fifth session. [ID:nSEO300536]
However, dealers said exporters' deals supported the Taiwan dollar. Exporters prefer a weaker Taiwan dollar because they can exchange their U.S. dollar earnings into more of the local currency.
The central bank, which often intervenes to keep the Taiwan dollar from big swings, did not step in on Monday due to light volumes, dealers said. It prefers the local currency to trade gradually lower to maintain the island's export competitiveness.
The Taiwan dollar could test as low as T$33.5 this week, dealers said.
Since hitting a 10-1/2-year high in late March, the Taiwan dollar has lost 11 percent mainly due to deepening worries over the health of the export-led economy as fears mounted about the severity of the global slowdown.
On the smaller Cosmos exchange , the Taiwan dollar fell to T$33.169 to the U.S. dollar, from the previous close of T$33.075.
(Reporting by Gina Chang and Lin Miao-jung; Editing by Ken Wills)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net))
Keywords: MARKETS TAIWAN CURRENCY/

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Monday, 17 November 2008 16:44:13RTRS [nTP1879] {EN}ENDS

TW market 1117

14:01 17Nov2008 RTRS-Taiwan stocks fall as LCD makers slide, Hon Hai up

* Hon Hai up after it said it has billions of dollars
* LCD makers continue slide on weak outlook
* Cellphone component suppliers down after Nokia warning
* Department stores up as gov't considers consumer vouchers

(Adds details, quotes)
TAIPEI, Nov 17 (Reuters) - Taiwan stocks closed 0.29 percent
lower on Monday as LCD makers fell, but the index was supported
by electronics giant Hon Hai Precision Industry Co <2317.TW>
after it moved to allay fears about its cash position.
The main TAIEX share index <.TWII> fell 12.90 to close at
4,439.80, having fallen in and out of positive territory during
much of the session.
"We're seeing some tech companies doing quite badly today,
and that's the main reason why shares are down today," said
Theresa Chueh, an analyst at Taiwan International Securities.
"Consumer sentiment remains weak, and the TAIEX is very
tech-heavy, which is why I don't think we have hit a bottom and
could see the index fall below 4,100."
Turnover was low at T$43.8 billion ($1.32 billion), lower
than the average level on most November trading days, as cautious
investors waited for a clearer direction before plunging in.
Hon Hai, the day's most active issue by turnover, rose 1.67
percent after it said it had billions of dollars on hand.
Its gains came despite Nokia , one of its major
clients, saying it sees the world's mobile phone market declining
in 2009. [ID:nLE248399]
So far this year, the stock has lost two-thirds of its value,
while the benchmark TAIEX has nearly halved. [ID:nTP311710]
Other suppliers of cellphone components, however, fell, with
shares of Largan Precision <3008.TW>, which makes lenses used in
many camera-enabled cellphones, and Unimicron <3037.TW>, which
makes printed circuit board, both down by their 7 percent limit.
LCD makers led the day's losses, hit by a triple whammy of
weakening prices, dampened consumer demand and a guilty plea by
Chunghwa Pictures Tube (CPT) <2475.TW> to charges of a
price-fixing conspiracy.
AU Optronics <2409.TW>, the day's most active share by
volume, Chi Mei Optoelectronics <3009.TW> and CPT all fell by
their daily 7 percent down limit.
"The waters are going to be choppy for a while more," said
Kevin Chang, head of regional tech strategy at Yuanta Securities.
"While some may argue that it is obvious that companies are
going to give a weaker outlook, given the current climate, any
downward revision by a major vendor is still going to affect the
market."
On the bright side, department store shares got a boost from
a report that the Taiwan government would decide on Thursday on
measures to boost domestic consumption and ensure that GDP growth
in 2009 remains above 2 percent.
Plans to issue consumer vouchers pushed the department stores
sub-index <.TDEI> and the food sub-index <.TFII> up more than 5
percent.
The glass and ceramics sub-index <.TGLI> rose more than 6
percent on reports that large-scale public projects could be
brought forward.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.29 percent
Close on day 4,439.80
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click

TWD 14 Nov

16:41 14Nov2008 RTRS-Taiwan dollar off 2-wk low on US$ selling, exporters

(Updates to close)
TAIPEI, Nov 14 (Reuters) - The Taiwan dollar rose on Friday, ending a three-day losing streak, as foreign banks and exporters sold the U.S. dollar, but the gain was tempered by weakness in the stock market as foreigners sold shares.
The Taiwan dollar rose to an intraday high of T$33.041 against the U.S. dollar in late trading, but gave up some gains to close at T$33.079, still up from Thursday's finish of T$33.177, its lowest finish in two weeks.
Volume on the main Taipei Forex Inc exchange was a light $725 million, down from $1.030 billion a day earlier.
"The Taiwan dollar was boosted by a globally weaker U.S. dollar last night, and some foreign banks were selling the U.S. dollar," said a dealer at a local bank.
The U.S. dollar fell against the euro on Thursday as a strong performance on Wall Street helped ease extreme risk aversion, reducing demand for safety. [ID:nN13370973]
The Taiwan dollar was further propped up as exporters sold the U.S. dollar.
Exporters, who prefer a weaker Taiwan dollar so they can convert their U.S. dollar earnings to more of the local currency, traded as they feared the Taiwan dollar would gain too much, dealers said.
However, the Taiwan dollar's rise was limited as Taiwan stocks <.TWII> gave up much of their gains early in the day to close 0.34 percent higher on Friday, with foreign institutions unloading a net T$3.6 billion ($109 million) worth of local shares.
Despite the day's rise, the Taiwan dollar has lost about 10 percent since hitting a 10-1/2-year high in late March, largely due to fund outflows.
Dealers said they still expected the Taiwan dollar to be on a downward trend and to test as low as T$33.2 next week.
On the smaller Cosmos exchange , the Taiwan dollar rose to T$33.075 to the U.S. dollar, from the previous close of T$33.180.
(Reporting by Gina Chang and Yvette Chen; Editing by Ken Wills)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net))
Keywords: MARKETS TAIWAN CURRENCY/

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Friday, 14 November 2008 16:41:24RTRS [nTP278448] {EN}ENDS

TW market 1114

13:32 14Nov2008 RTRS-TAIWAN STOCKS <.TWII> CLOSE UP 0.34 PERCENT
13:40 14Nov2008 RTRS-Taiwan stocks rebound; DRAM makers struggle

(Updates index to close)
TAIPEI, Nov 14 (Reuters) - Taiwan stocks crawled back from a
two-week low on Friday, climbing 0.34 percent, led by a rebound
in chip shares that saw UMC <2303.TW> surge by its daily limit as
investors scoured the market for bargains.
The main TAIEX share index <.TWII> closed 14.87 points higher
at 4,452.70, giving up much of its early gains and briefly
entering negative territory in afternoon trade as financials and
shares of DRAM makers slipped on fears about their long-term
prospects.
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Reporting by Kelvin Soh, Editing by Jonathan Hopfner)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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Friday, 14 November 2008 13:32:34RTRS [nTPU000858] {EN}ENDS

TWD 13 Nov

16:44 13Nov2008 RTRS-Taiwan dlr hits 2-wk low on global recession concerns

(Updates to close)
TAIPEI, Nov 13 (Reuters) - The Taiwan dollar weakened to a two-week closing low on Thursday, as foreign banks bought the U.S. dollar and global recession concerns loomed, but exporters' purchases cushioned the currency's fall.
The Taiwan dollar, which fell for a third straight session, hit an intraday low of T$33.192 to the U.S. dollar just before the mid-day break, but pared some losses to end at T$33.177, its lowest finish since Oct. 29 and weaker than Wednesday's T$32.994.
Volume on the main Taipei Forex Inc exchange had been thin in previous sessions as the market lacked a clear direction, but rose to a moderate $1.030 billion on Thursday after jitters over the slowing world economy resurfaced.
"Foreign banks were selling the Taiwan dollar, but the Taiwan dollar was supported as exporters bought it around T$33.150-T$33.180," said a dealer at a local bank.
Exporters prefer a weaker Taiwan dollar so they can exchange their U.S. dollar earnings for more of the local currency.
Local stock losses and a falling Korean won added further pressure to the Taiwan dollar.
Taiwan stocks <.TWII> closed down 3.85 percent to a two-week closing low on Thursday, with foreign institutions unloading T$8 billion ($240 million) worth of local shares.
The South Korean won ended local trade down 2.3 percent against the U.S. dollar at a fresh two-week closing low on Thursday.
After the market closed, South Korea's finance minister said he expected plans for a currency swap deal with China to make progress on Friday. [ID:nSEO343633]
Since rallying to a 10-1/2-year high in late March, the Taiwan dollar has lost about 11 percent, mainly due to fund outflows as a bleak global economy will likely dampen the island's exports, a key driver of economic growth.
With the domestic economy slowing, dealers mostly expected the Taiwan dollar to continue on a downward trend to help support the island's export competitiveness.
On the smaller Cosmos exchange , the Taiwan dollar softened to T$33.180 to the U.S. dollar from the previous close of T$32.990.
(Reporting by Gina Chang and Yvette Chen; Editing by Ken Wills)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net)) Keywords: MARKETS TAIWAN CURRENCY/

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Thursday, 13 November 2008 16:44:58RTRS [nTP158724] {EN}ENDS

TW market 1113

14:18 13Nov2008 RTRS-Taiwan stocks fall to 2-week low; CPT limit down

* CPT limit down after guilty plea to price-fixing
* Techs down as U.S. retailers pull back on outlook
* Financials down after more than half report Oct losses

(Adds details, quotes, hot stocks)
TAIPEI, Nov 13 (Reuters) - Taiwan stocks fell 3.85 percent to
a two-week closing low on Thursday, hit by tech and financial
stocks on fears over a possible lengthy economic recession, with
Chunghwa Picture Tubes (CPT) falling by its daily limit.
LCD maker CPT <2475.TW> shares shed 7 percent after it
pleaded guilty to price-fixing conspiracies on LCD screens with
South Korea's LG Display <034220.KS> and Japan's Sharp Corp
<6753.T>.
All sub-indexes lost ground, pulling the main TAIEX share
index <.TWII> 177.74 points lower to close at 4,437.83. Turnover
was thin at T$49.25 billion ($1.48 billion).
"There're lots of people who don't think the recession is
going to end anytime soon," said Alex Huang, vice president at
Mega International Securities.
"A worsening economic climate will mean decreased consumer
spending. Put this together with the poor performance by U.S.
financials yesterday and you get the tech- and financial-heavy
TAIEX falling."
Warnings by U.S. retailers Best Buy and Macy's
coupled with chip giant Intel cutting its revenue
forecast further dampened the mood for Taiwan's tech shares,
pulling the electronics sub-index <.TELI> down 4.57 percent.
"CPT was already burning and this is the equivalent of
throwing another matchstick into the fire," said Sean Wu at
Nomura Securities.
"However, it doesn't seem like they will have much of an
issue with cashflow right now because they can pay the fine over
a five-year period."
Taiwan's tech industry produces much of the world's
electronics, including more than half of all laptop PCs. They
were already reeling from last week's weak export numbers and
slumping consumer demand from its major consumer markets.
Shares of electronics giant Hon Hai <2317.TW>, the day's most
active issue by turnover, were limit down as investors looked
warily at the prospect of weak sales in the key Christmas season.
The world's top contract chip maker TSMC <2330.TW>
also fell 6.68 percent.
A report by research firm Gartner that PC maker Acer
<2353.TW> has surpassed its rivals to become the top seller in
western Europe failed to lift sentiment, with the company's
shares closing flat. [ID:nTP157878]
Financial shares joined in the tech freefall, with the
banking and insurance sub-index <.TFNI> falling 5.6 percent after
the U.S. administration largely abandoned its plan to buy up bad
mortgage assets. [ID:nN12393760]
Selling was further exacarbated by local media reports that
more than half of all the island's banks reported a loss in
October.
Shares of leading financial holding companies Fubon Financial
<2881.TW>, Taishin Financial <2887.TW> and Chinatrust Financial
<2891.TW> all fell by the daily 7 percent limit.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -3.85 percent
Close on day 4,437.83
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.2)
(Reporting by Kelvin Soh, Editing by Ken Wills)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US]

TWD 12 Nov

16:37 12Nov2008 RTRS-Taiwan dlr at near 2-wk low on funds, importers

(Updates to close)
TAIPEI, Nov 12 (Reuters) - The Taiwan dollar ended at a near two-week low on Wednesday, as foreign banks and oil companies bought the U.S. dollar, but exporters' purchases of local dollars helped limit its fall.
The Taiwan dollar hit an intraday low of T$33.002 against the U.S. dollar during early trade, but pared some losses to end at T$32.994, its weakest finish since Oct. 31. It closed at T$32.874 in the previous session.
Investors were mostly sidelined as the market lacked direction, with volume on the main Taipei Forex Inc exchange at a light $873 million but higher than $586 million on Tuesday.
"Foreign banks bought U.S. dollars in the morning, and the weakening South Korean won and Singapore dollar also dragged the Taiwan dollar lower," said a dealer at a local bank.
Since both economies compete on exports, the Taiwan dollar tends to trade lower when the South Korean won weakens.
Oil companies, which usually need U.S. dollars for imports such as crude, purchased the U.S. currency and in turn pressured the Taiwan dollar, said another dealer in Taipei.
However, exporters helped cushion the Taiwan dollar's fall as they bought the local currency at around T$32.980, the second dealer said.
Exporters usually prefer a weaker Taiwan dollar so they can exchange their U.S. dollar earnings for more of the local dollar.
"Trading has been light recently as it's near the end of the year," said the dealer.
"It seems the central bank didn't enter today and let the market move because trade was light and not very volatile," he said, adding he expected the Taiwan dollar to trade between T$32.8-T$33.2 this week.
The Taiwan dollar has fallen about 10 percent since rallying to a 10-1/2-year high in late March, largely due to fund outflows.
On the smaller Cosmos exchange , the Taiwan dollar softened to T$32.990 to the U.S. dollar, from the previous close of T$32.863.
(Reporting by Gina Chang and Lin Miao-jung; Jonathan Hopfner)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net)) Keywords: MARKETS TAIWAN CURRENCY/

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Wednesday, 12 November 2008 16:37:34RTRS [nTP140590] {EN}ENDS

TW market 1112

14:13 12Nov2008 RTRS-Taiwan stocks end down 0.5 pct, Cathay Fin falls

* Cathay Fin leads financial shares lower
* Techs mixed as Asustek up, but contract PC makers fall

(Adds details, quotes)
TAIPEI, Nov 12 (Reuters) - Taiwan stocks closed 0.5 percent
lower on Wednesday, hurt by financial shares such as Cathay
Financial <2882.TW> amid a global economic slowdown and after the
arrest of Taiwan's former president Chen Shui-bian.
The main TAIEX share index <.TWII> fell 23.00 points to close
at 4,615.57, after volatile trade with the index swinging in and
out of positive territory.
The broader market has lost about 7 percent in the past week,
in part because of concerns that the global financial crisis
would hurt demand for Taiwan's technology exports.
Cathay Financial shares shed 3.7 percent, pulling the
financial sector <.TFNI> down 1.1 percent.
Taishin Financial <2887.TW> fell 5.1 percent, while Shin Kong
Financial <2888.TW>, which announced a T$4.5 billion loss in
October, lost 0.5 percent.
"This is just a very minor correction for financials,
considering their shares have been doing well for a while now,"
said Kevin Yang, president of Paradigm Asset Management.
Tech shares were mixed, with top contract chip maker TSMC
<2330.TW> rising 0.7 percent while top electronics parts
maker Hon Hai finished unchanged.
PC vendor Asustek Computer <2357.TW>, which is also the
world's top motherboard maker, closed 1.2 percent higher after it
said its U.S. sales were not being hurt by the global economic
slowdown. [ID:nTP59545]
Asustek, which pioneered low-cost notebook PCs known as
netbooks, is expected by some analysts to benefit from the
slowing economy as price-conscious consumers look toward cheaper
purchases.
"We are looking at a support level of about 4,500 and don't
think that will be breached," said Theresa Chueh, an analyst at
Taiwan International Securities.
"The government will probably kick in to buy shares if the
market falls too much to support prices, which is why we don't
see prices falling much below current levels."
Turnover was low at T$46.18 billion ($1.4 billion), but
higher than the average level in October when the government
halved the down limit on individual stocks, but lower than most
other November trading days.
"Volume and turnover are both quite low right now," said
Andrew Teng of Taiwan International Securities.
"There're a lot of people watching from the sidelines because
there isn't a clear market trend right now. There's not much good
or bad news to trigger a clear direction for the market."
Contract PC makers Wistron Corp <3231.TW> and Compal
Electronics <2324.TW> fell 7 percent and 4.7 percent,
respectively, as investors feared that weaker demand for laptop
computers could hit the companies' bottom line.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.50 percent
Close on day 4,615.57
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Reporting by Kelvin Soh, Editing by Ken Wills)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia

TW market friggin' Freaky 11Nov

14:15 11Nov2008 RTRS-Taiwan stocks fall 2.2 pct, hit by techs and banks

* Financials down on fears of worsening economic crisis
* PC shares fall after Circuit City files for bankruptcy
* TSMC, Hon Hai mixed after October sales

(Adds details, quotes)
TAIPEI, Nov 11 (Reuters) - Taiwan stocks fell 2.2 percent on
Tuesday as worries about a worsening economic crisis hit
financials, and some PC shares slid after a top U.S. electronics
retailer filed for bankruptcy weeks before a top sales period.
The main TAIEX share index <.TWII> closed 101.70 points lower
at 4,638.57, on thin turnover of T$55.5 billion ($1.7 billion).
The financial sector <.TFNI> fell 5.2 percent and the electronics
sub-index <.TELI> lost 2.1 percent.
"Everyone's got lower expectations for Christmas this year,"
said Vincent Chen, head of downstream tech at Yuanta Securities.
"Many companies have been cutting forecasts and year-end
inventories are still looking quite full. Even Apple is
cutting orders."
Taiwan's tech exporters, already reeling from weak export
numbers released on Friday, extended their losses after U.S.
retailer Circuit City filed for bankruptcy as
investors looked warily ahead at the Christmas shopping season.
Shares of Acer Inc <2353.TW>, the world's No.3 PC vendor,
shed 6 percent and contract laptop maker Compal Electronics
<2324.TW> were down 6.8 percent.
Taiwan is a tech powerhouse whose electronics sales provide a
measure of global demand. The island's companies make much of the
world's electronics, including more than half of all laptop PCs.
The world's top contract chip maker TSMC <2330.TW>
fell 0.2 percent after reporting a 10 percent annual drop in its
October sales on Monday, while electronics parts maker Hon Hai
<2317.TW> added 0.3 percent after its October sales rose
[ID:nTP226989].
Financial shares joined in the fall despite various
government measures in recent weeks to boost investor confidence,
including the fourth interest rate cut in two months on Sunday.
Leading financial holding company Cathay Financial <2882.TW>
slipped 6.9 percent to its daily limit. Shin Kong Financial
<2888.TW> was limit down and Chinatrust Financial <2891.TW> fell
5 percent.
"Besides being affected by the bad news that is emerging from
the market, these financial companies have been climbing for a
while now so we are seeing some form of a correction now," said
Parker Wu, an analyst at Shin Kong Investment Trust.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -2.15 percent
Close on day 4,638.57
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]

(Reporting by Kelvin Soh, Editing by Keiron Henderson)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN