14:33 21Jan2009 RTRS-Taiwan stocks up as DRAMs rally on tie-up talk

* Market up on last trading day before Lunar New Year break
* DRAMs jump as tie-up talks heat up in Taiwan
* Transportation stocks biggest winners on China hopes
* Taiwan share market reopens on Monday, Feb.2

(Adds details and quote)
TAIPEI, Jan 21 (Reuters) - Taiwan stocks reversed course to
inch up 0.13 percent on Wednesday, the last trading day before the
Lunar New Year holidays, with DRAM makers rallying amid growing
investor expectations for a long-awaited industry restructuring.
The main TAIEX share index <.TWII> ended 5.36 points higher
at 4,247.97, as analysts said government funds bought some
heavyweights such as TSMC <2330.TW> and UMC <2303.TW> before the
market closed for an extended Lunar New Year break through Feb.
1. The index had closed at a 1-1/2-month low on Tuesday.
Taiwan Semiconductor Manufacturing Co (TSMC) , the
world's top contract chip maker, and smaller rival United
Microelectronics Corp (UMC) gained 1.52 percent and 2.82
percent, respectively.
Shares of DRAM makers jumped as talks to consolidate Taiwan's
DRAM industry gained pace, with major domestic and foreign
players meeting government officials in a bid to reach deals as
the Lunar New Year approaches. [ID:nTP360236]
Executives from Japan's Elpida <6665.T> and U.S. firm Micron
, technology partners for Powerchip and Nanya respectively,
were planning trips or had come recently for talks as the
industry grapples with its worst ever downturn.
"Despite all the news we're hearing, it's still very unclear
who could lead a merger or which companies will merge," said
Andrew Deng, a vice president of Taiwan International Securities.
"There are still high risks for DRAM companies in terms of
the length of the downturn and financial control," he said,
adding that he recommended his clients sell DRAM stocks for now.
Shares of top DRAM maker Powerchip <5346.TWO> and smaller
rival ProMOS <5387.TWO> both jumped by the 7 percent daily limit,
pushing up the semiconductor sub-index <.TSII> 0.6 percent.
Number two maker Nanya Technology <2408.TW> ended flat after
on Tuesday posting its seventh straight quarterly loss of T$10.4
billion ($310 million) in the fourth quarter [ID:nTP338948].
Deng said trading volume was thin as recent slides in global
markets triggered market concerns over the health of the world
economy. Turnover was at T$49 billion, slightly higher than
T$45.7 billion in the previous session.
Shares of LCD maker Chi Mei <3009.TW> fell 0.49 percent after
a newspaper reported on Wednesday the firm would put off setting
up an 8.5-generation LCD plant as it waits for the industry
outlook to become clearer.
Chi Mei's larger rival AU Optronics <2409.TW>, the world's
No. 3 flat panel maker, fell 2.12 percent.
The LCD share declines came as investors ignored reports by
data tracking firms DisplaySearch and WitsView saying LCD prices
were expected to start rising soon, after stabilising at the end
of January, another newspaper said.
The transportation sub-index <.TTPI> gained 1.52 percent,
buoyed after a government official on Tuesday said China and
Taiwan would change regular chartered flights into scheduled
flights this year, a move that could lift Taiwan's ailing airline
industry. [ID:nTP341914]
------------------------------------------------------------
Move on day 0.13 percent
Close on day 4,247.97
2009 intraday high 4,817.44
2009 intraday low 4,164.19
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$33.6)
(Reporting by Gina Chang)
((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

For Related News, Double Click on one of these codes:
[E] [Z] [MF] [PSC] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [STX] [EMRG] [LEN] [RTRS] [.TW] [.TWII] [.MSTW]

For Relevant Price Information, Double Click on one of these codes:
<.TWII> <.MSTW>

Wednesday, 21 January 2009 14:33:59RTRS [nTP360789] {EN}ENDS

tw stock 0119

14:08 19Jan2009 RTRS-Taiwan stocks finish flat but Mediatek jumps

* Market up for a third session
* Mediatek jumps on reports of strategic alliance in China
* LCD, DRAM mixed on report of expected capex cuts

(Adds quote and details)
TAIPEI, Jan 19 (Reuters) - Taiwan stocks ended flat in thin
trading on Monday, the start of a shortened three-day trading
week before the Lunar New Year holiday, but Mediatek <2454.TW>
outperformed on a reported new alliance in China.
The main TAIEX share index <.TWII> ended up 0.02 percent or
0.66 points at 4,366.76, eking out a small gain for a third
session. Turnover was light at T$35.5 billion ($1.1 billion),
well below the daily average of T$62.9 billion this month.
"Trading volume will be thin this week as investors are
being conservative ahead of the long holidays," said Tu Jin-lung,
chairman of Grand Cathay Investment Services.
Tu expected the TAIEX to trade between 4,300-4,600 points
through Wednesday, before Taiwan's stock market closes through
Feb. 1 for the Lunar New Year holidays.
Shares of Taiwan's top chip designer Mediatek, the most
active share by turnover, jumped 5.26 percent.
Local media reported on Monday the firm was hoping to reap
big dividends from a new strategic alliance with a cellphone
testing laboratory under China's Ministry of Industry and
Information Technology.
"The alliance is good for Mediatek in the long term. It will
help Mediatek receive orders from major brands and broaden its
markets," said Nigel Lee, a portfolio manager of National
Investment Trust.
Shares of LCD and DRAM makers were mixed after a newspaper
said companies in both sectors were expected to cut their capex
this year by half or more when they start reporting fourth
quarter results this week.
AU Optronics <2409.TW>, the world's No. 3 LCD maker, gained
1.02 percent while smaller rival Chi Mei <3009.TW> lost 2.27
percent. AU will announce its fourth-quarter earnings on
Thursday.
Powerchip <5346.TWO>, Taiwan's top DRAM maker, and ProMOS
<5387.TWO> both dropped by their daily 7 percent limit. Nanya
Tech <2408.TW> shot up 5.02 percent.
UBS had initiated coverage of Powerchip and Nanya Tech with
sell ratings, saying both needed significant financial
restructuring. [ID:nSEO302408]
Smartphone maker HTC <2498.TW> rose 1.74 percent after saying
it expected double-digit 2009 revenue growth as smartphones gain
popularity despite a global downturn. [ID:nTP294449]
The electronics sub-index <.TELI> was up 0.34 percent.
------------------------------------------------------------
Move on day 0.02 percent
Close on day 4,366.76
2009 intraday high 4,817.44
2009 intraday low 4,313.19
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$33.5)
(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:
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

For Related News, Double Click on one of these codes:
[E] [Z] [MF] [PSC] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [STX] [EMRG] [LEN] [RTRS] [.TW] [.TWII] [.MSTW]

For Relevant Price Information, Double Click on one of these codes:
<.TWII> <.MSTW>

Monday, 19 January 2009 14:08:50RTRS [nTP300767] {EN}ENDS

twd 0116

16:33 16Jan2009 RTRS-Taiwan dollar off 1-mth low, c.bank limits gains

(Adds closing values, details)
TAIPEI, Jan 16 (Reuters) - The Taiwan dollar rose on Friday from the previous session's one-month closing low as exporters took advantage of the currency's recent weakness, but gains were capped by the central bank and foreign fund outflows.
The Taiwan dollar hit a high of T$33.300 but later pared gains to close the day at T$33.360, stronger than Thursday's close of T$33.379, which was the lowest finish since Dec. 10.
"Exporters dominated much of trading today, and volumes are quite thin because there isn't very much going on from the other quarters," said a dealer in Taipei.
Volume on the main Taipei Forex Inc exchange was thin at $663 million, sharply lower than Thursday's $1.174 billion.
A rising stock market <.TWII> and strengthening regional currencies also helped spur sentiment in the forex market, as the Taiwan dollar tracked a rise in the South Korean won .
An interest rate cut by the European Central Bank did not have the expected effect on the Taiwan dollar, dealers said, because investors had expected such a move.
"The rate cut of 50 basis points was within expectations, and with the economy weighing so heavily in most economies right now, the ECB's move wasn't surprising to most investors," said another dealer.
However, the Taiwan central bank stepped in during the final minutes of trade to prevent the local currency from climbing further, which would make the island's exports more expensive.
The central bank, which keeps the local currency in a managed float, sometimes intervenes in the foreign exchange market to prevent massive fluctuations in the Taiwan dollar.
Foreign investors, who sold a total of T$6.79 billion of Taiwan stocks on Friday, also helped curb the local currency's rise as they pulled their money out and placed it into U.S. dollar holdings.
On the smaller Cosmos exchange, the Taiwan dollar strengthened to T$33.349 from the previous close of T$33.370.
(Reporting by Kelvin Soh and Yvette Chen; Editing by Ken Wills)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/

For Related News, Double Click on one of these codes:
[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP]

For Relevant Price Information, Double Click on one of these codes:

Friday, 16 January 2009 16:33:45RTRS [nTP263396] {EN}ENDS

tw stock 0116

14:10 16Jan2009 RTRS-Taiwan stocks off 6-week low as LCDs gain

* Market rebounds from a six-week closing low
* LCD shares jump on potential tie-ups in China
* ProMOS limit-down after selling equipment to TSMC

(Adds details and quote)
TAIPEI, Jan 16 (Reuters) - Taiwan stocks rose 0.76 percent on
Friday, with the island's top two LCD makers AU <2409.TW> and Chi
Mei <3009.TW> leading gains after saying they would sign tie-up
deals with Chinese TV makers to develop the mainland market.
The main TAIEX share index <.TWII> closed 32.93 points higher
at 4,353.70, following a positive day on Wall Street and bouncing
back from a six-week closing low in the previous session.
Turnover was thin at T$46.8 billion ($1.4 billion), lower than
Thursday's T$54 billion.
AU Optronics and smaller rival Chi Mei were up 3.61
percent and 3 percent, respectively, with the broader
optoelectronics sub-index <.TOPI> rising 2.96 percent.
Both companies said on Friday they would sign strategic
supply deals with top China TV makers, as they aim to develop
mainland sales following a slump in the key U.S. and European
markets. [ID:nTP281231]
"I think Chi Mei has a better chance than AU to develop in
China as most of its production goes to small and medium
enterprises like the ones in China," said Andrew Deng, a vice
president of Taiwan International Securities Corp.
"It's a positive development for AU and Chi Mei, but we'll
need to watch whether the deals will be fully implemented."
Deng expected the market to trade between 4,100-4,500 points
before the Lunar New Year holidays. The stock market will be
closed from Jan. 22 through Feb. 1.
However, shares of ProMOS Technologies <5387.TWO> fell by its
7 percent daily limit after the company said it was raising T$580
million through the sale of chip-making equipment to TSMC but
would incur a T$570 million loss on the sale. [ID:nTP279981]
Shares of Taiwan Semiconductor Manufacturing Co (TSMC)
<2330.TW> , the world's top contract chip maker, rose 1.71
percent, lifting the electronics sub-index <.TELI> by 1.54
percent.
ProMOS's larger rivals Powerchip <5346.TWO> and Nanya Tech
<2408.TW> both gained about 1 percent.
Around half an hour before the market closed, a government
official said Taiwan did not want any of its struggling DRAM
makers to fold, fearing such a collapse could have a ripple
effect for the sector. [ID:nTPU001045]
PC maker Asustek <2357.TW> advanced 0.49 percent even after
the firm said it could incur losses of up to T$2 billion in the
fourth quarter of 2008 due to fluctuations in foreign currency
exchange rates. [ID:nTP282399]

HOT STOCKS
-- Chunghwa Picture Tubes <2475.TW> rose 1.34 percent.
One executive with LG Display Co <034220.KS> and three from
Chunghwa Picture Tubes Ltd have agreed to plead guilty and serve
time in jail in the United States for fixing prices of liquid
crystal displays used in a wide variety of electronics, the
Justice Department said. [ID:nN15545475]
------------------------------------------------------------
Move on day 0.76 percent
Close on day 4,353.70
2009 intraday high 4,817.44
2009 intraday low 4,313.19
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 Jacqueline Wong)
((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/

For Related News, Double Click on one of these codes:
[E] [Z] [MF] [PSC] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [STX] [EMRG] [LEN] [RTRS] [.TW] [.TWII] [.MSTW]

For Relevant Price Information, Double Click on one of these codes:
<.TWII> <.MSTW>

Friday, 16 January 2009 14:10:53RTRS [nTP282996] {EN}ENDS

twd 0115

17:05 15Jan2009 RTRS-Taiwan dollar at 1-mth closing low on fund outflows

(Adds closing values, details)
TAIPEI, Jan 15 (Reuters) - The Taiwan dollar weakened to a one-month closing low on Thursday as foreign funds pulled their money out of a falling local stock market and on concerns that weak U.S. retail sector could further hit the island's exports.
The Taiwan dollar fell to a low of T$33.384 before paring losses to close at T$33.379 to the U.S. dollar, its lowest close since Dec. 10 and weaker than Wednesday's close of T$33.258.
Volume on the main Taipei Forex Inc exchange was moderate at $1.174 billion, higher than Wednesday's $686 million.
"Foreign funds pulled a lot of their money out of Taiwan dollar holdings today, and the U.S. dollar is showing a lot of strength globally, so that just dragged the local currency down," said a dealer in Taipei.
Foreign institutions sold the Taiwan dollar as they pulled out of local stocks <.TWII>, which closed the day down more than 4 percent as DRAM shares plunged, while weak U.S. retail data weighed on the island's export-reliant tech sector.
Foreign investors sold a total of T$14.61 billion ($437 million) on Thursday, their highest net outflow in 2009, bringing their net sales to T$31.43 billion so far this year.
Dealers said they expected the rate to test the T$33.500 level before the Lunar New Year holiday at the end of the month. The Taiwan dollar markets will be closed from Jan. 24 to Feb. 1 for the holiday.
Expectations that the European Central Bank will cut interest rates could also pressure the Taiwan dollar, dealers said, as such a move would further strengthen the U.S. currency.
"The ECB meeting is the one thing that most investors are factoring in right now, and it'd be quite surprising if they didn't cut rates as the market expects," said another dealer.
On the smaller Cosmos exchange, the Taiwan dollar closed at T$33.370 compared to Wednesday's close of T$33.245.
(Reporting by Kelvin Soh and Yvette Chen; Editing by Tomasz Janowski)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com))
Keywords: MARKETS TAIWAN CURRENCY/

For Related News, Double Click on one of these codes:
[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP]

For Relevant Price Information, Double Click on one of these codes:

Thursday, 15 January 2009 17:05:28RTRS [nTP237133] {EN}ENDS

twn stock 0115

14:33 15Jan2009 DJ Taiwan Shares End Down 4.4% At More-Than-5-Wk Low On US Slump

DJ Taiwan Shares End Down 4.4% At More-Than-5-Wk Low On US Slump

TAIPEI (Dow Jones)--A slump in U.S. stock markets overnight on worse-than-expected economic data and concerns about the worsening financial crisis, dragged the Taiwan index to its lowest closing level in more than five weeks Thursday.
The Weighted Price Index of the Taiwan Stock Exchange fell 200.70 points, or 4.4%, to 4320.77. It was the index's lowest since it settled at 4278.61 on Dec. 8, 2008.
Turnover totaled NT$54.20 billion, down from the previous session's NT$60.95 billion.
There were 1,532 decliners, 134 gainers, and 85 closed unchanged.
Traders said they expect the main index to continue declining Friday and Saturday, and pegged support at 4180.
The Taiex "will still decline for the rest of the week unless U.S. shares make a strong rebound," said Mega International Investment Service trader Stanley Chou.
The domestic stock market will be open on Saturday to compensate for its closure Jan. 30 due to a public holiday.
"There's still Intel's earnings tonight. If it's worse than its guidance, we can expect another round of losses in shares," said Daiwa Securities SMBC-Cathay Co. fund manager David Li.
A 2.9% fall in the bellwether Dow Jones Industrial Average overnight due to poor December retail sales data and a 23% plunge in Citigroup on the bank's decision to sell a majority stake in its Smith Barney retail brokerage weighed on the Taiex. The decline was the DJIA's biggest point and percentage drop since Dec. 1, 2008.
Taiwan's financial sub-index ended down 6.0% after major creditor banks said they agreed to roll over loans for debt-laden, unprofitable ProMOS Technologies.
Taiwan Cooperative, ProMOS's second-largest creditor bank, fell 4.2% to NT$15 after Vice President John Chou said the bank agreed on Jan. 9 to extend the company's loan repayment schedule by a year. Taiwan Cooperative's loans to ProMOS total around NT$8 billion.
ProMOS, which has slightly over NT$56.5 billion in outstanding loans, fell by the maximum 6.9% daily trading limit to NT$1.88, after the Economic Daily News reported Thursday the Taiwan government isn't likely to inject funds, and creditor banks aren't likely to increase loans.
"Without money from the government and banks, ProMOS may file for bankruptcy soon," says Taiwan International Securities analyst Michael Chen.
Technology shares ended 4.2% lower on negative developments in the U.S.,

twd 0114

16:53 14Jan2009 RTRS-Taiwan dlr ends flat, off one-month closing low

(Adds closing values, details)
TAIPEI, Jan 14 (Reuters) - The Taiwan dollar bounced back slightly on Wednesday from a one-month closing low hit in the previous session on exporters' deals, but central bank intervention and foreign fund outflows capped its gains.
The Taiwan dollar rose to a high of T$33.190 to the U.S. dollar, but later pulled back on some of those gains to close at T$33.258, inching up from Tuesday's close of T$33.265.
Volume on the main Taipei Forex Inc exchange was thin at $686 million, lower than Tuesday's $806 million.
"We saw lots of exporters today, but the Taiwan dollar didn't climb too much because there were some foreign funds putting their money into the U.S. dollar," said a dealer in Taipei.
Foreign investors sold a total of T$3.34 billion ($101 million) in Taiwan stocks on Wednesday, which brought their net sales to T$16.81 billion so far this month. Taiwan stocks <.TWII> closed 0.24 percent lower.
Dealers said expectations that the European Central Bank would cut interest rates this week would pressure the Taiwan dollar, as such a move would strengthen the U.S. currency.
"Any interest rate cut will mean investors may push even more money into U.S. dollar holdings globally, which will drive down the Taiwan dollar," said another dealer.
However, Taiwan dealers are still watching whether the rise of the U.S. dollar will last as U.S. interest rates will be still much lower than European rates, making U.S. dollar-denominated assets less attractive.
Exporters saw opportunities to sell off their U.S. dollars as the Taiwan dollar had been weakening for five straight sessions, meaning they could convert their foreign currency earnings to more of the local currency.
On the smaller Cosmos exchange , the Taiwan dollar closed at T$33.245, weaker than the previous close of T$33.238.
(Reporting by Kelvin Soh and Yvette Chen, Editing by Jacqueline Wong)

tw stock 0114

14:55 14Jan2009 RTRS-Taiwan stocks fall, but DRAM, banking shares up

* DRAM, LCD makers rally on rising product prices
* TSMC sinks, UMC down after Macquarie cuts target price
* Banking shares rise on financial regulator's comments
(Adds quotes and details)
By Gina Chang
TAIPEI, Jan 14 (Reuters) - Taiwan stocks edged down 0.24
percent on Wednesday, reversing earlier gains as investors
remained cautious, but DRAM shares including Powerchip <5346.TWO>
rose as product prices showed signs of stabilising.
Financial shares also outperformed the broader market after
Taiwan's top financial regulator said he was not opposed to
hostile takeovers in the banking sector as long everything was
legal.
The main TAIEX share index <.TWII> ended down 10.89 points at
4,521.47, reversing a one-week intraday high hit early in the
session and a 1.76 percent gain the previous day.
Turnover was light at T$60.8 billion ($1.8 billion), but
higher than Tuesday's T$49.7 billion.
Powerchip, Taiwan's largest DRAM chipmaker, gained 3.82
percent and smaller rival Nanya Tech <2408.TW> jumped by its
daily 7 percent limit.
Prices of standard DRAM memory chips used in personal
computers are showing signs of stabilising after almost two years
of declines thanks to capacity cuts by manufacturers, research
firm DRAMeXchange said late on Tuesday. [ID:nLD371237]
"We're seeing signs of recovery in these sectors, but
investors are still cautious about the overall economy," said
Michael On, managing director of Beyond Asset Management.
"I believe DRAM makers bottomed out after their South Korean
rivals stopped cutting product prices."
Major technology firms such as TSMC <2330.TW> and AU
<2409.TW> are set to announce fourth-quarter earnings next week,
with the market expecting the figures to be gloomy.
LCD product prices are also rising as the sector slashes
production and receives last-minute new orders, but analysts are
divided over whether the hikes are sustainable, a local newspaper
said on Wednesday.
AU Optronics Corp , the world's No. 3 LCD maker,
advanced 2.04 percent even after saying it planned to trim its
global workforce by less than 2 percent this year. [ID:nTP172001]
AU's smaller rival, Chi Mei <3009.TW>, fell 1.41 percent. The
electronics sub-index <.TELI> was down 0.48 percent.
Taiwan Semiconductor Manufacturing Co (TSMC) , the
world's top contract chip maker, lost 1.83 percent. Its shares
jumped 5 percent in the previous session after Citigroup said in
a research note it expected a rising factory utilisation rate for
TSMC.
United Macroelectronics Corp (UMC) <2303.TW> , TSMC's
crosstown rival, fell 0.51 percent after Macquarie cut its
earnings forecast and target price for the company due to lower
production in 2009 amid weak global demand. [ID:nTP131202]
The financial sub-index <.TFNI> gained 0.93 percent following
the regulator's takeover comment. Cathay Financial <2882.TW>, the
island's top listed financial holding firm, was up 0.14 percent
and Taishin Financial <2887.TW> ended limit up.
"I remain neutral on the regulator's comment," said Eddy
Chen, a vice president of National Investment Trust.
"The law of the jungle applies everywhere. I think we'll see
consolidation in the banking and other industries through next
year as smaller businesses could fail to survive the current
downturn."
Taiwan Cooperative Bank <5854.TW> ended up 0.97 percent after
saying on Tuesday it would form a T$2

twd 0113

17:09 13Jan2009 RTRS-Taiwan dlr at 1-mth low on outflows; exporters buy

(Updates to close)
TAIPEI, Jan 13 (Reuters) - The Taiwan dollar weakened for a fifth session to a fresh one-month closing low on Tuesday due to foreign selling of local stocks and a globally strong U.S. dollar, but exporter purchases limited the local currency's fall.
The Taiwan dollar closed at T$33.265 to the U.S. dollar compared with Monday's final price of T$33.235 and was the lowest close since Dec. 12. The currency had reached a one-week intraday low of T$33.310 in early trade.
Volume on the main Taipei Forex Inc. was a light $806 million, but higher than $733 million a day earlier.
"Today the main factor moving the market is a foreign fund outflow for most of the session," said a dealer in Taipei.
Foreign investors sold T$523 million ($15.7 million) worth of Taiwan shares on Tuesday, which brought their net sales to T$13.471 billion so far this month. Taiwan stocks <.TWII> rose 1.8 percent on Tuesday, recovering from a two-week intra-day low.
Further pressuring the Taiwan dollar, the U.S. currency strengthened globally on Tuesday on mounting expectations that the European Central Bank would cut interest rates this week.
Exporters saw opportunities to sell off their U.S. dollars as the Taiwan dollar had been weakening for five straight sessions, meaning they could convert their foreign currency earnings to more of the local currency for cash needs at home.
Dealers said the central bank was doing two-way trades in the market, selling and buying U.S. dollars to smooth big fluctuations in the Taiwan dollar.
On the smaller Cosmos exchange , the Taiwan dollar closed at T$33.238 to the U.S. dollar from the previous final price of T$33.231.
(Reporting by Lee Chyen Yee, Ralph Jennings and Yvette Chen; Editing by Keiron Henderson)
((ralph.jennings@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: ralph.jennings.reuters.com@reuters.net)) Keywords: MARKETS TAIWAN CURRENCY/

For Related News, Double Click on one of these codes:
[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP]

For Relevant Price Information, Double Click on one of these codes:

Tuesday, 13 January 2009 17:09:03RTRS [nTP171211] {EN}ENDS

twn stock 0113

14:45 13Jan2009 Taiwan stocks bounce from two-week low as TSMC gains

* Market ends a four-session losing streak
* TSMC jumps 5 pct on report of rising utilisation rate
* Tourism shares weaken despite passage of gaming law

(Adds quotes and details)
By Gina Chang
TAIPEI, Jan 13 (Reuters) - Taiwan stocks rose 1.8 percent on
Tuesday, recovering from a two-week intra-day low, as chip
heavyweight TSMC <2330.TW> boosted technology shares on a report
its utilisation rate could rise in February.
The main TAIEX share index <.TWII> ended up 78.5 points at
4,532.36, ending its four-session losing streak during which it
fell about 7 percent. Earlier on Tuesday, the index hit a low of
4,423.1, its weakest level since Dec. 29.
Taiwan Semiconductor Manufacturing Co (TSMC) , the
world's top contract chip maker and the most active share by
turnover, jumped 5.2 percent.
TSMC could see its utilisation rate rising to as much as 45
percent in February from 40 percent currently following a flurry
of orders from the likes of Qualcomm and Mediatek
<2454.TW>, a newspaper report said on Tuesday.
"TSMC's news helped lift the market higher today," said Tu
Jin-lung, chairman of Grand Cathay Investment Services.
"However, most news now we hear about is still very bad, so
we'll see if TSMC's utilisation rate really rises when it holds
investors conference next week," said Tu, who expected the market
to trade between 4,400-4,700 points this week.
TSMC is due to announce its fourth-quarter earnings and
outlook for the first quarter on Jan. 22.
Quanta <2382.TW>, the world's No.1 contract notebook PC
maker, rose 0.7 percent after a newspaper said the firm had
received orders to make Apple's new All-in-One iMac,
while Hon Hai <2317.TW> will make Apple's iBook.
Hon Hai, Taiwan's largest electronics gear maker, was up 3.2
percent, while the electronics sub-index <.TELI> rose 2.7
percent.
Among losers, the tourism sub-index <.THOI> fell 0.9 percent,
giving up early gains,

TW market 0112

14:16 12Jan2009 RTRS-Taiwan stocks at 2-week closing low, Compal falls

* Market drops for a third day to two-week closing low
* Compal Elec down on lowered 2009 laptop shipment outlook
* Cathay Financial falls after posting Q4 loss

(Adds details and quote)
TAIPEI, Jan 12 (Reuters) - Taiwan stocks fell 0.31 percent on
Monday to a fresh two-week closing low, with Compal <2324.TW>
dropping on a weaker 2009 shipment outlook and investors turning
cautious before major U.S. firms post earnings results.
The main TAIEX share index <.TWII> closed down 13.63 points at
4,453.90, its weakest finish since Dec. 29. Turnover was thin at
T$55.9 billion ($1.7 billion), but up from T$43 billion in the
previous session.
"Trading volume was light. Both stock buying and selling have
become less active ahead of earnings results by major U.S. firms
this week," said Nigel Lee, a portfolio manager of National
Investment Trust.
"However, unless there comes any surprising bad news from the
U.S., Taiwan's market will trade in a tight range."
Lee expected the market to trade between 4,350-4,600 points
this week as investors were reluctant to trade before the market
closes for Lunar New Year holidays from Jan. 22 through Feb. 1.
Compal Electronics, the world's second-largest contract
laptop maker, fell 0.62 percent after saying on Saturday its
shipments this year could be 8.6 percent below its previous
target due to the global slowdown. [ID:nTP82604]
Quanta Computer <2382.TW>, Compal's larger rival, lost 3.54
percent.
The electronics sub-index <.TELI> inched up 0.06 percent,
with Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's top contract chip maker, 1.59 percent
higher.
Shares of AU Optronics <2409.TW>, the world's No. 3 flat
panel maker, fell 4.82 percent and smaller rival Chi Mei
<3009.TW> ended flat.
Some LCD makers are having trouble finding workers after a
surge in orders in December, as recently laid-off employees opt
to remain on unemployment rather than risk going back to work
only to be laid off again, a newspaper reported on Monday.
The market fell on Saturday after the top financial regulator
decided to stick with the new accounting rule. Most analysts said
a delay in the new rule would provide little help for companies,
if demand for their products remains weak.
A newspaper said on Monday the government was studying
possible amendments to a new inventory-related accounting rule
that has raised concerns among the business community.
The financial sub-index <.TFNI> was down 1.87 percent,
dragged by Cathay Financial <2882.TW>, Taiwan's top listed
financial holding firm, which lost 2.16 percent.
Cathay Financial posted on Saturday a net loss of T$1.37
billion in the fourth quarter and finished 2008 with its lowest
profit since 2001. [ID:nTP332687]

------------------------------------------------------------
Move on day -0.31 percent
Close on day 4,453.90
2009 intraday high 4,817.44
2009 intraday low 4,431.04
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 Jacqueline Wong)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC STOCK MARKETS:

TWN stock 0110

16:25 10Jan2009 RTRS-Taiwan stocks hit 2-wk low, T$ falls in weekend trade

(Adds closing prices, quotes)
TAIPEI, Jan 10 (Reuters) - Taiwan stocks fell 0.78 percent to
a two-week closing low on Saturday after the top financial
regulator decided to stick with a controversial new accounting
rule, while the Taiwan dollar ended slightly weaker.
The main TAIEX share index <.TWII> slid 35.21 points to
4,467.53 points, with Asustek Computer <2357.TW> pulling the
electronics sub-index <.TELI> 0.6 percent lower.
Taiwan's financial markets opened on Saturday to offset an
extra holiday over the New Year weekend.
The Taiwan dollar closed at T$33.160 to the U.S.
dollar, inching down from Friday's close of T$33.155, with
falling stocks pressuring the currency, though exporters selling
the U.S. currency provided some support.
Earnings concerns weighed on stocks after regulators on
Friday said they would keep a new rule tightening the booking of
inventories in company accounts. [ID:nTP352076]
"Investors were worried the new rule would hurt Asustek and
others with high inventories," said Eddie Chen, a vice president
at National Investment Trust. "There were mounting concerns
Asustek's rivals were also in a tough situation."
Asustek, the world's top motherboard maker, fell 2.7 percent
as it said after the market closed on Friday that its December
sales were down 20 percent. [ID:nTP70596]
Contract chipmaker TSMC <2330.TW> closed unchanged even
though its December sales dropped 55 percent from a year earlier
to its lowest level in almost six years. [ID:nTP98053].
Adding to the dismal outlook in the tech industry, laptop
maker Compal <2324.TW>, whose shares ended flat, said after the
markets closed that its shipments this year could be up to 8.6
percent lower than its previous target. [ID:nTP82604]
The financial sub-index <.TFNI> dropped 1.39 percent as
Taishin <2887.TW> and several other financial firms were singled
out by the cabinet as conducting possible questionable deals
during a sector reform several years ago.
Taishin's stock fell 3.74 percent, while China Development
Financial <2883.TW>, another firm identified by the cabinet,
declined 1.38 percent. Officials of both firms were not
immediately available for comment. [ID:nTP73548]
Volumes were thin in the stock and forex markets as regional
markets were closed.
"Some foreign institutions conducted outflows, but frankly,
there weren't many people trading today," said a forex dealer.
Better-than-expected U.S. jobs data

TWN stock 0110

16:25 10Jan2009 RTRS-Taiwan stocks hit 2-wk low, T$ falls in weekend trade

(Adds closing prices, quotes)
TAIPEI, Jan 10 (Reuters) - Taiwan stocks fell 0.78 percent to
a two-week closing low on Saturday after the top financial
regulator decided to stick with a controversial new accounting
rule, while the Taiwan dollar ended slightly weaker.
The main TAIEX share index <.TWII> slid 35.21 points to
4,467.53 points, with Asustek Computer <2357.TW> pulling the
electronics sub-index <.TELI> 0.6 percent lower.
Taiwan's financial markets opened on Saturday to offset an
extra holiday over the New Year weekend.
The Taiwan dollar closed at T$33.160 to the U.S.
dollar, inching down from Friday's close of T$33.155, with
falling stocks pressuring the currency, though exporters selling
the U.S. currency provided some support.
Earnings concerns weighed on stocks after regulators on
Friday said they would keep a new rule tightening the booking of
inventories in company accounts. [ID:nTP352076]
"Investors were worried the new rule would hurt Asustek and
others with high inventories," said Eddie Chen, a vice president
at National Investment Trust. "There were mounting concerns
Asustek's rivals were also in a tough situation."
Asustek, the world's top motherboard maker, fell 2.7 percent
as it said after the market closed on Friday that its December
sales were down 20 percent. [ID:nTP70596]
Contract chipmaker TSMC <2330.TW> closed unchanged even
though its December sales dropped 55 percent from a year earlier
to its lowest level in almost six years. [ID:nTP98053].
Adding to the dismal outlook in the tech industry, laptop
maker Compal <2324.TW>, whose shares ended flat, said after the
markets closed that its shipments this year could be up to 8.6
percent lower than its previous target. [ID:nTP82604]
The financial sub-index <.TFNI> dropped 1.39 percent as
Taishin <2887.TW> and several other financial firms were singled
out by the cabinet as conducting possible questionable deals
during a sector reform several years ago.
Taishin's stock fell 3.74 percent, while China Development
Financial <2883.TW>, another firm identified by the cabinet,
declined 1.38 percent. Officials of both firms were not
immediately available for comment. [ID:nTP73548]
Volumes were thin in the stock and forex markets as regional
markets were closed.
"Some foreign institutions conducted outflows, but frankly,
there weren't many people trading today," said a forex dealer.
Better-than-expected U.S. jobs data

TWD 0109

17:13 09Jan2009 RTRS-Taiwan dollar weakens on foreign fund outflows

(Adds closing values, details)
TAIPEI, Jan 9 (Reuters) - The Taiwan dollar weakened for a second straight session on Friday as foreign funds pulled their money out of a sliding stock market.
The Taiwan dollar rose to a high of T$33.069 in early trade, but later turned around to close the day at T$33.155, weaker than Thursday's close of T$33.115.
Taiwan's stock and foreign exchange markets will be open on Saturday this week as compensation for an extra holiday during the New Year weekend, but most dealers expect trading volumes to be low and said there could be some market volatility.
Volume on the main Taipei Forex Inc exchange was thin at $892 million, lower than Thursday's $1.337 billion.
"A lot of foreign funds were pulling their money out of the stock market and out of Taiwan, so there was some demand for U.S. dollars today," said a dealer in Taipei.
Foreign funds sold more than T$6 billion ($180 million) out of the local stock market on Friday, with a net outflow of more than T$3 billion so far this month.
Taiwan stocks <.TWII> closed the day lower at a two-week low on Friday.
Dealers said exporter deals that could support the Taiwan dollar also tapered off after morning trade, as volumes fell ahead of U.S. jobless data due after the Taiwan market's close.
"With so many people possibly going on leave tomorrow, volumes should be very low, and it's easier to manipulate the currency then," said another dealer in Taipei.
On the smaller Cosmos exchange , the Taiwan dollar weakened to T$33.140 from Thursday's T$33.115.
(Reporting by Kelvin Soh, Editing by Jacqueline Wong)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:kelvin.soh.reuters.com@reuters.net)) Keywords: MARKETS TAIWAN CURRENCY/

For Related News, Double Click on one of these codes:
[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP]

For Relevant Price Information, Double Click on one of these codes:

Friday, 09 January 2009 17:13:18RTRS [nTP97449] {EN}ENDS

TWN stock 0109

14:25 09Jan2009 RTRS-Taiwan stocks end at 2-wk low; TSMC, Asustek drop

* Market extends loss from worst day in 2 mths on Thursday
* TSMC down after December sales results
* Asustek limit down on worse-than-expected sales drop
* UMC slides on worst monthly sales decline in 7 years

(Adds quotes, details)
By Gina Chang
TAIPEI, Jan 9 (Reuters) - Taiwan stocks fell 0.73 percent to
close at its lowest level in nearly two weeks on Friday, as tech
shares slid due to a string of dismal results by bellwether TSMC
<2330.TW> and PC vendor Asustek <2357.TW>.
The main TAIEX share index <.TWII> finished 33.05 points
lower at 4,502.74, its weakest close since Dec. 29, extending
Thursday's 5 percent fall which was the biggest single-day drop
in two months.
The heavily-weighted electronics sub-index <.TELI> fell 0.97
percent, with Taiwan Semiconductor Manufacturing Co (TSMC)
, the world's top contract chip maker, 1.32 percent lower.
Minutes after the market closed, TSMC posted a 55 percent
annual fall in December sales. [ID:nTPU001024]
Asustek Computer, the world's top motherboard maker, fell by
the daily maximum of 7 percent.
"Asustek's profit warning dragged down major tech shares such
as Acer and Hon Hai," said Eddy Chen, a vice president of
National Investment Trust.
"But Asustek is a healthy company, and people had already
expected the sector downturn to hurt profits," he said.
Asustek said late on Thursday its fourth-quarter motherboard
shipments likely fell more than its previous forecasts.
[ID:nTP83307]
Rivals of Asustek also ended lower. Acer <2353.TW> was down
5.92 percent. Hon Hai <2317.TW>, Taiwan's top electronics gear
maker and the most active share by turnover, lost 4.68 percent.
The market would trade in a narrow range in the next two
weeks, with the benchmark index between 4,300 and 4,700 points,
said John Chiu, a vice president at Fuh Hwa Securities Investment
Trust.
Many companies with high inventories such as Asustek were
also pressured by a new accounting rule that would tighten the
booking of inventories, prompting Taiwan's presidential office to
issue a statement late on Thursday that said the new rule should
be put into effect at a later date. [ID:nTP77137]
However, analysts said the new rule should not be delayed as
volatile policies may hurt investor confidence and the change
would likely provide little help for businesses if the economy
keeps worsening.
TSMC's crosstown rival United Microelectronics Corp (UMC)
<2303.TW> slid 1.74 percent, after it posted a 45.5
percent drop in December sales, its biggest decline in nearly
seven years. [ID:nTP83686]
The financial sub-index <.TFNI> lost 1.64 percent, with
Cathay Financial <2882.TW>, the island's top listed financial
holding firm, down 0.43 percent.
Investor worries mounted that banks might suffer losses as
many companies could default on their bank loans after the Lunar
New Year, analysts said.
Taiwan's stock market will be closed for the Lunar New Year
holidays from Jan. 22 to Feb. 1.

HOT STOCKS
- First Financial <2892.TW>, Taiwan's No. 6 financial holding
firm, fell 0.31 percent after the firm said on Thursday it
expects its banking arm's pre-tax profit to grow in 2009 by less
than half its recent pace due to a slowing global economy.
[ID:nTP86470]
-- Chinatrust Financial <2891.TW>, the island's top credit
card issuer, shed 5.04 percent after saying on Thursday it posted
a pre-tax loss of T$541 million in December. (For details of
Taiwan corporate results, click [ID:nTP226989])
------------------------------------------------------------
Move on day -0.73 percent
Close on day 4,502.74
2009 intraday high 4,817.44
2009 intraday low 4,472.45
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$33.1)
(Editing by Jacqueline Wong)
((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

TWD 0108

16:32 08Jan2009 RTRS-Taiwan dollar weakens after rate cut, fund outflows

(Adds closing values, details)
TAIPEI, Jan 8 (Reuters) - The Taiwan dollar fell on Thursday after a cut in the island's benchmark discount rate the previous day, as foreign funds pushed their money into higher-yielding currencies but exporter deals provided some support.
The Taiwan dollar fell to as low as T$33.151 in early trade, but later pared some losses to close the day at T$33.115, weaker than Wednesday's close of T$32.980.
Volume on the main Taipei Forex Inc exchange was active at $1.337 billion, higher than the $908 million a day ago.
"The interest rate cut pushed lots of money out of Taiwan dollar holdings, plus we saw a lot of foreign fund outflows as the stock market fell today," said a dealer in Taipei.
Taiwan stocks <.TWII> closed down 5.3 percent on Thursday, its biggest single-day drop in two months, after the island's exports sank at a record pace in December amid savaged demand from China.
Foreign funds pushed more than T$11 billion ($332 million) out of the stock market on Thursday, reversing much of the inflows this year.
Taiwan resorted to the emergency interest rate cut on Wednesday, bringing the benchmark discount rate to 1.50 percent, the lowest level since September 2004. [ID:nTP4588]
The Taiwan dollar also fell together with regional currencies such as the South Korean won , with which it shares a similar export-oriented trade profile.
However, exporters eager to take advantage of the weakening Taiwan dollar helped prevent larger losses in the local currency as they sold their U.S. dollar holdings ahead of the Lunar New Year holiday later this month.
Exporters generally prefer a weaker Taiwan dollar as it allows them to get more of the local currency for every U.S. dollar.
Dealers also said upcoming unemployment data out of the U.S. on Friday could affect the Taiwan dollar the rest of this week, further weighing on the local currency if the figures are shown to be worse than expected.
"How the stock market performs tomorrow and how bad the nonfarm payrolls appear on Friday are really the two biggest issues that can affect the Taiwan dollar right now," another dealer said.
On the smaller Cosmos exchange, the Taiwan dollar closed at T$33.115, weaker than the T$32.971 on Wednesday.
(Reporting by Kelvin Soh; Editing by Ken Wills)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:kelvin.soh.reuters.com@reuters.net)) Keywords: MARKETS TAIWAN CURRENCY/

For Related News, Double Click on one of these codes:
[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP]

For Relevant Price Information, Double Click on one of these codes:

Thursday, 08 January 2009 16:32:03RTRS [nTP93878] {EN}ENDS

TWN stock market 0108

14:16 08Jan2009 RTRS-Taiwan stocks post worst drop in 2-mths on exports

* Market hits 2-wk closing low on record export slump
* TSMC drops after Intel's revenue warning
* ProMOS falls despite submitting aid proposal with Elpida

(Adds details and quote)
TAIPEI, Jan 8 (Reuters) - Taiwan stocks fell 5.3 percent on
Thursday, its biggest single-day drop in two months, after
exports sank at a record pace in December, while chipmaker TSMC
<2330.TW> fell on a revenue warning from Intel Corp .
The main TAIEX <.TWII> share index ended down 254.05 points
at 4,535.79, posting its largest one-day percentage decline since
Nov. 6, 2008. The market also hit its lowest finish since Dec.
29, 2008.
The fall was further weighed down by losses on Wall Street,
ending TAIEX's five session winning streak during which it jumped
about 8.5 percent.
The electronics sub-index <.TELI> dropped 5.53 percent as
Taiwan posted a 42 percent fall in December exports after the
market closed on Wednesday, prompting the island's central bank
to cut interest rates by 50 basis points. [ID:nTP4588]
Turnover was light at T$76.3 billion ($2.3 billion), down
from Wednesday's T$96.7 billion.
"The fall in exports was worse than expectations, and hit the
market hard today," said Michael On, a managing director of
Beyond Asset Management.
Analysts said exports would likely drop further this month,
as working days were shortened due to Lunar New Year holidays.
"I think the central bank's rate cut will only have limited
effects on exports, if demand remains sluggish," said On.
After an emergency meeting on Wednesday, the central bank
announced it lowered the benchmark discount rate to 1.50 percent,
the lowest level since September 2004.
The semiconductor <.TSII> sub-index dropped 6.12 percent,
while TSMC slid 6.73 percent after microchip maker Intel Corp on
Wednesday issued its second revenue warning on the fourth quarter
due to weaker-than-expected demand. [ID:nN07475140]
UMC <2303.TW> , which ended flat, announced after the
stock market closed that its December sales fell by a sharp 45.5
percent from a year earlier.
PC maker Asustek <2357.TW> fell by its 7 percent daily limit
after posting a 55 percent yearly drop in December sales.
[ID:nTP226989]
However, a local newspaper reported on Thursday that Asustek
said it would focus its efforts on the low-cost segment of the
market and would launch a low-cost mobile phone in March.
ProMOS <5387.TWO>, the island's No.3 DRAM chipmaker, fell
5.33 percent even after the firm and Japan's Elpida <6665.T> had
jointly submitted a proposal for state assistance. [ID:nTP354739]
Shares of struggling DRAM makers were further weighed by a
research firm iSuppli note that said global sales of DRAM chips
were expected to fall 4 percent in 2009, extending their decline
for the third straight year. [ID:nSEO84566]
Powerchip <5346.TWO>, Taiwan's top DRAM maker, lost 5.87
percent and smaller rival Nanya Technology <2408.TW> ended limit
down.
First Financial <2892.TW> dropped 6.4 percent after a
newspaper said the finance ministry told the firm it wants 13 of
the company's 15 board seats so that it can lead consolidation
within the industry.
The financial sub-index <.TFNI> slumped 6.38 percent, with
Cathay Financial <2882.TW>, the island's largest listed financial
holding firm, ending limit down.
------------------------------------------------------------
Move on day -5.3 percent
Close on day 4,535.79
2009 intraday high 4,817.44
2009 intraday low 4,532.74
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$33.1)
(Reporting by Gina Chang, Editing by Jacqueline Wong)
((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

TW stock market 0107

14:34 07Jan2009 RTRS-Taiwan stocks extend winning streak led by HTC

* Market posts over 2-month closing high, up for fifth day
* HTC rises on smaller-than-expected profit decline
* TSMC sinks on report of declining utilisation rate

(Adds details and quote)
TAIPEI, Jan 7 (Reuters) - Taiwan stocks rose 1.32 percent on
Wednesday to a more than two-month closing high, with smartphone
maker HTC <2498.TW> leading gains after the company posted a 2008
net profit that was better than analysts had expected.
The main TAIEX share index <.TWII> ended 62.58 points higher
at 4,789.84, its strongest close since Nov. 5, 2008. The market
has now risen more than 7 percent since Dec.29, notching up a
five-session winning streak.
Turnover was moderate at T$97 billion ($2.9 billion), up from
T$81 billion a day earlier, as foreign funds gradually returned
to the domestic market after pulling out amid a worldwide
financial crisis last year.
"Foreign investors are buying back local stocks as movement
in U.S. stocks stabilises," said Tu Jin-lung, chairman of Grand
Cathay Investment Services.
Tu expected the market to test as high as 5,000 points before
the Lunar New Year holiday later this month.
Since Dec. 1, foreign funds have pumped a net T$25 billion
into Taiwan's stock market, reversing major outflows for most of
the year. For a table of foreign trading in Taiwan stocks,
double-click on [ID:nTP170358].
Shares of HTC Corp, the second-most active share by turnover,
jumped 2.06 percent to T$347, after the firm posted a 0.9 percent
fall in 2008 net profit from the prior year on Tuesday, beating
analysts' expectations. [ID:nTP36613]
"Even though HTC's profit fell, the market had pretty much
priced in all bad news," said Tu, adding that HTC shares had a
good chance of rising to T$500 this year.
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's top contract chip maker, fell 2.3 percent,
after a newspaper report on Wednesday quoted JPMorgan's technology
research head as saying the chip maker's utilisation rate could
fall to as low as 30 percent in the first quarter.
The semiconductor sub-index <.TSII> gained 0.39 percent,
while the electronics sub-index <.TELI> rose 0.97 percent.
DRAM shares were mixed after Nanya Technology <2408.TW> said
on Wednesday it planned to raise the contract prices of its
chips, but that it was too early to say demand would pick up
significantly. [ID:nSEO190203]
Nanya Technology rose 1.25 percent but Powerchip <5346.TWO>,
Taiwan's top DRAM maker, fell 2.0 percent and ProMOS <5387.TWO>
lost 6.25 percent.
A local newspaper reported that capital expenditure at global
DRAM chip makers will fall 40-50 percent in 2009, as the industry
grapples with a supply glut and falling prices.

------------------------------------------------------------
Move on day 1.32 percent
Close on day 4,789.84
2009 intraday high 4,817.44
2009 intraday low 4,679.43
All time high 12,682.41 12 FEB 1990
-------------------------------------------------------------
(US$1=T$32.9)
(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..b....[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

For Related News, Double Click on one of these codes:
[E] [Z] [MF] [PSC] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [STX] [EMRG] [LEN] [RTRS] [.TW] [.TWII] [.MSTW]

For Relevant Price Information, Double Click on one of these codes:
<.TWII> <.MSTW>

Wednesday, 07 January 2009 14:34:05RTRS [nTP36369] {EN}ENDS

tw dlr 0105

16:57 05Jan2009 RTRS-Taiwan dlr eases to 1-wk closing low, c.bank seen

(Updates to close)
TAIPEI, Jan 5 (Reuters) - The Taiwan dollar eased to more
than a one-week closing low on Monday, its first session of 2009,
as investors covered short positions in the U.S. dollar and the
central bank sold the local currency to limit rises.
The Taiwan dollar closed at T$33.005 to the U.S.
dollar, weakening from T$32.860 on Wednesday and hitting its
weakest closing price since Dec. 26. Taiwan's markets were closed
on Thursday and Friday for the New Year.
Volume on the main Taipei Forex Inc. was $1.136 billion,
higher than $817 million on Wednesday.
"The rate has been very stagnant today," a dealer in Taipei
said. "The central bank doesn't want the Taiwan dollar to get too
strong, so they sold currency."
The U.S. dollar held firm near a three-week high against the
yen on Monday as investor risk appetite grew after Tokyo shares
followed Wall Street higher on optimism the U.S. economy will
turn around in the second half of the year.
U.S. stocks rallied on Friday on hopes of a new economic
stimulus package from President-elect Barack Obama.
But as exporters came out in force to buy the relatively weak
Taiwan dollar at favourable rates for cash needs at home and
foreign funds sought the currency to buy local stocks, the
island's central bank stepped in to stop the currency from
strengthening, dealers said.
Foreign funds bought T$4.141 billion ($125.5 million) in
Taiwan stocks, which were up 2.33 percent, on Monday.
The central bank keeps the local currency in a managed float
and sometimes intervenes in the market to prevent massive
fluctuations in the Taiwan dollar. It seeks to keep local
currency gains in check to help maintain export competitiveness.
In a Reuters poll conducted in December, dealers and
economists expected the Taiwan dollar to trade weaker at T$34.6
in the middle of 2009 and T$34.0 by the end of the year.
Weakening export figures will be a key factor that could push the
Taiwan dollar lower.
On the smaller Cosmos exchange , the Taiwan dollar
closed at T$33.003 against the U.S. dollar, weaker than
Wednesday's final price of T$32.776.
(Reporting by Ralph Jennings and Yvette Chen, Editing by
Jacqueline Wong)
((ralph.jennings@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging: ralph.jennings.reuters.com@reuters.net))
Keywords: MARKETS TAIWAN/CURRENCY

For Related News, Double Click on one of these codes:
[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP]

For Relevant Price Information, Double Click on one of these codes:


Monday, 05 January 2009 16:57:45RTRS [nTP362764] {EN}ENDS

TW stock 0105

14:07 05Jan2009 RTRS-LCDs push Taiwan stocks to near 2-mth closing high

* LCD stocks jump on stabilising product prices
* Construction issues jump on hopes of more investment
* ProMOS flat on report of repayment extension

(Adds details and quote)
By Gina Chang
TAIPEI, Jan 5 (Reuters) - Taiwan stocks rose 2.33 percent on
Monday, the first trading day of 2009, to a near two-month
closing high, with LCD makers such as AU Optronics <2409.TW>
leading the rise on signs of stabilising panel prices.
The main TAIEX share index <.TWII> ended 107.09 points higher
at 4,698.31, its highest finish since Nov. 10, 2008.
The TAIEX, which closed last Thursday and Friday for the New
Year break, tracked rallies on Wall Street and other global
markets last week.
AU Optronics, the world's No. 3 LCD maker, jumped by its 7
percent daily limit. Smaller rival Chi Mei <3009.TW> rose 6.48
percent with the optoelectronics sub-index <.TOPI> up 5.76
percent.
The island's two biggest LCD makers were the market's two
most active shares by trading volume.
"Shares of LCD firms like Chi Mei were oversold. I believe
LCD stocks had reached their bottom and will continue rising,"
said Michael On, a managing director of Beyond Asset Management.
Research firm DisplaySearch said notebook PC and LCD TV panel
prices are expected to be flat in January, stopping the trend of
falling prices seen for the past six months. [ID:nTP356813]
On expected the TAIEX to rise to as high as 5,200 points
later this month, with sentiment boosted in part by the
distribution of free shopping vouchers by Taiwan's government and
by U.S. President-elect Barack Obama's inauguration.
A lift of the partial ban on short-selling on Monday helped
push the exchange's turnover to T$67 billion ($2 billion) from
T$53 billion in the previous session.
Taiwan's government imposed a ban on short-selling last
September to help boost the sagging stock market amid the global
financial crisis.
ProMOS <5387.TWO>, Taiwan's No. 3 DRAM chipmaker, ended flat
after a newspaper reported the company had received a six-month
extension from its creditors for repayment of a T$50 billion
loan. [ID:nTP74405]
The electronics sub-index <.TELI>, rose 3.16 percent.
The banking and insurance sub-index <.TFNI> was up 1.98
percent, with Cathay Financial <2882.TW>, the island's top listed
financial holding firm, rising 2.74 percent.
Most analysts anticipate that financial stocks will lead the
Taipei market higher in 2009 on expectations of the signing of a
cross-Strait financial memorandum of understanding (MOU) under
improving relations between Taiwan and China.
The construction sub-index <.TCOI> jumped 2.04 percent after
a newspaper reported insurance companies are expected to start
pumping hundreds of billions of Taiwan dollars into the local
stock and property market.

HOT STOCKS
-- Asustek <2357.TW>, the world's top motherboard maker,
gained 5.16 percent. Quanta <2382.TW> and Compal <2324.TW>, the
world's top two contract notebook makers, advanced 2.02 percent
and 0.29 percent, respectively.
Their gains came despite Citigroup downgrading Asustek and
Compal to "sell". Citi downgraded Quanta to "hold".
[ID:nTP299275]

------------------------------------------------------------
Move on day 2.33 percent
Close on day 4,698.31
2009 intraday high 4,778.52
2009 intraday low 4,687.57
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$33.0)
(Editing by Ken Wills)