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14:10 25Feb09 RTRS-Taiwan stocks hit 1-wk closing high; Powerchip up * Market tracks U.S. rally to hit one-week closing high * Powerchip, ProMOS limit-up on report of consolidation * Financial shares surge as investors snap up beaten stocks (Adds details and quote) TAIPEI, Feb 25 (Reuters) - Taiwan stocks rose 1.43 percent on Wednesday to a one-week closing high, with DRAM makers including Powerchip <5346.two> jumping after a report that Japan's Elpida <6665.t> would lead the consolidation of Taiwan's DRAM industry. The main TAIEX share index <.TWII> finished 63.56 points higher at 4,493.74, its strongest close since Feb. 19, boosted by a Wall Street rally that saw the S&P 500 <.SPX> jump 4 percent. Turnover was light at T$71.1 billion ($2 billion), but higher than T$56.5 billion in the previous session. Powerchip, Taiwan's top DRAM semiconductor maker, and smaller rival ProMOS <5387.two> both rose by almost their 7 percent daily limits. But Nanya Tech <2408.tw>, Taiwan's No.2 DRAM maker, fell 1.8 percent. The semiconductor sub-index <.TSII> was up 1.02 percent. "We need more concrete details from the consolidation plan to know the future direction of Taiwan's DRAM industry," said Karen Lin, a fund manager of Paradigm Asset Management. "It would be better if the consolidation involves the whole industry to give up its excessive capacity. The failure of Qimonda alone is not enough for a reduction of the industry's total output." Lin expected the market to trade between 4,200-4,700 points for the rest of the week. Japan's Elpida is likely to lead the consolidation of Taiwan's struggling DRAM sector, as a senior company executive arrives to meet with the island's vice president on Wednesday, a local newspaper reported. Taiwan's economics ministry told Reuters late on Tuesday that it would postpone to next week the unveiling of a plan to overhaul the DRAM sector, as it needs more time to consider suggestions from various quarters. [ID:nTP50297] Shares of ProMOS recouped early losses after the cash-strapped firm proposed earlier this week an offer to buy back bonds at a heavy discount from for investors. [ID:nTP312528] Investors ignored dismal data on Tuesday that showed Taiwan's January export orders dropped a record 42 percent from a year earlier. [ID:nSP396732] Taiwan Semiconductor Manufacturing Co (TSMC) <2330.tw>, the world's top contract chip maker, gained 1.59 percent, lifting the electronics sub-index <.TELI> 1.13 percent higher. TSMC's ADR shot up 4.09 percent in U.S. trading overnight. The financial sub-index <.TFNI> jumped 4.26 percent, led by Cathay Financial <2882.tw>, the island's top listed financial holding firm, which advanced 1.22 percent. The rally came as investors snapped up beaten-down financial stocks, which had been weighed by rising bad debts amid the deepening economic recession and concerns that lower interest rates would hurt company profits. The financial sub-index had dropped 16.5
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