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))
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