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14:41 04Mar09 RTRS-Taiwan stocks post biggest pct gain in 2 weeks * Mediatek lifts technology shares higher * Hon Hai jumps after increasing workers in China * TSMC gains after alliance with Intel (Adds details and quote) TAIPEI, March 4 (Reuters) - Taiwan stocks rose 2.39 percent on Wednesday, the biggest percentage gain since Feb. 13, with chip designer Mediatek <2454.tw> leading technology shares higher after the firm raised its first-quarter sales forecasts. The main TAIEX share index <.TWII> ended up 106.08 points at 4,541.42. Turnover was at T$88.6 billion ($2.5 billion), much higher than Tuesday's T$66.6 billion. Taiwan's top chip designer, Mediatek Inc, the second-most active share by turnover, jumped 2.04 percent after revising upward its first-quarter sales due to better-than-expected demand for cellphone chips from the emerging markets. [ID:nTPU001162] "Mediatek's forecast shows signs that the economy is hitting a bottom," said Michael On, a managing director of Beyond Asset Management. "I think some other companies such as TSMC will also follow suit as they were too pessimistic before," said On, adding that the Taiwan dollar's rise on Tuesday also supported the market. A relatively weak Taiwan dollar this year has helped prompt foreign selling in Taiwan stocks recently and made local companies post forex losses. The electronics sub-index <.TELI> rose 3.08 percent. Hon Hai <2317.tw>, Taiwan's largest electronics gear maker and the most active share by turnover, jumped 5.58 percent after saying it had recently increased its number of employees in China by 5 percent. [ID:nTPU001165] TSMC <2330.tw> , the world's top contract chip maker, rose 3.14 percent after TSMC and Intel Corp jointly announced a technology alliance to tap potential growth of some new electronic devices. [ID:nN02409178] ProMOS <5387.two>, Taiwan's No.3 DRAM maker, fell by its 7 percent daily limit after saying that more than 50 percent of its convertible bond investors had agreed to accept its offer to buy back at a discount or withdraw their redemptions of the bonds. [ID:nTP352878] Powerchip <5346.two> and Nanya Tech <2408.tw>, Taiwan's top two DRAM makers, gained 1.58 percent and 6.35 percent, respectively.
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