* Financials surge on hopes of closer cross-strait ties
* Tourism shares climb as more Chinese visitors expected
* Techs pare early losses to close up
(Adds details, quotes)
By Kelvin Soh
TAIPEI, Dec 1 (Reuters) - Taiwan stocks rose 1.3 percent to a
fresh two-week closing high on Monday, as financial shares such
as Taishin Financial <2887.TW> surged on expectations of the
signing of a cross-strait financial services agreement.
The main TAIEX share index <.TWII> closed 57.94 points higher
at 4,518.43, its highest close since Nov. 12, as tourism shares
also gained on hopes of higher Chinese tourist numbers.
The banking and insurance sub-index <.TFNI> jumped 4.02
percent, while Taishin rose by its 7 percent daily limit.
Turnover was thin at T$66.9 billion ($2 billion), but higher
than Friday's T$57.7 billion, and was the highest level in about
three weeks.
"We expect the cross-strait financial services agreement to
be signed in the first half of next year, so that is pushing
financial stocks up," said Andy Wu, an analyst at Reliance
Securities.
"Sean Chen (the newly appointed chairman of the Financial
Supervisory Commission) is also more interventionist than his
predecessor, so I think the market expects more support if there
is trouble."
Tourism shares got a boost from local media reports that
Taiwanese companies were sending their Chinese employees to
Taiwan for junkets.
The island's two major airlines, China Airlines <2610.TW> and
Eva Airways <2618.TW>, both went limit up as an increase in
Chinese tourists would be good for their load factors.
Hotel operators also benefited, with Ambassador Hotel
<2704.TW> climbing limit up. The tourism <.THOI> and transport
<.TTPI> sub-indexes both closed more than 3 percent higher.
"Airline share prices have been falling for a while now,"
said Theresa Chueh, an analyst at Taiwan International
Securities.
"They were first hit by surging oil prices when the economy
was doing well, then they were hit by fears of falling demand
when the economy was doing badly, so there is some correction
today."
The tech sector also managed to fight off a slew of bad news,
with the electronics sub-index <.TELI> closing 0.46 percent
higher.
Hon Hai <2317.TW> was 1.4 percent higher at the session's
close, after its subsidiary Foxconn <2038.HK> announced on Friday
it would lay off 1,500 workers in Hungary, more than half of its
total workforce in the country, as orders waned. [ID:nLS706715]
Top contract chipmaker TSMC <2330.TW> also managed to shake
off the morning's losses to close unchanged after it told
department heads to cut costs by 20 percent. [ID:nLS695788]
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:
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S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
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Monday, 01 December 2008 14:25:33RTRS [nTP217786] {EN}ENDS
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