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14:09 20Apr09 RTRS-Taiwan stocks close higher as financial shares rise * Market recoups early losses as financials up on China hopes * Deutsche Bank lifts earnings forecast on TSMC * Tourisms up on expectations of more Chinese tourists (Adds details and quote) TAIPEI, April 20 (Reuters) - Taiwan stocks rose 0.46 percent on Monday, rebounding from a sharp fall the previous session, as financials including Cathay Financial rose ahead of Taiwan-China government talks on opening up cross-strait financial services. The main TAIEX share index <.TWII> ended up 26.28 points at 5,781.66. Turnover was active at T$121.5 ($3.6 billion), but lower than a one-year high of T$223.7 billion on Friday when the market slid more than 4 percent due to profit-taking. "The market still has a chance to rise further since foreign institutions did not contribute to Friday's pull-back and were still buying local shares," said Bevan Yeh, a senior fund manager of Prudential Financail Securities Investment Trust. "The signing of a memorandum of understanding (MOU) for the financial sector and a better Q2 outlook in the tech sector are the key factors that could help push the market higher." On Friday, foreign institutions bought a net T$10 billion worth of Taiwan stocks, bringing their net purchase to T$52 billion so far this month. (For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358]) The banking and insurance sub-index <.TFNI> rose 0.67 percent, recouping early losses and following a 6 percent decline the previous session. Cathay Financial <2882.tw>, the island's top listed financial holding firm, jumped 3.08 percent while Chinatrust Financial <2891.tw>, Taiwan's biggest credit card issuer, gained 2.28 percent. Taiwan and China will sign a deal on financial services and expand direct flights at talks next week, officials said on Saturday. [ID:nTP178921] However, analysts said financial shares would likely take a breather after the signing of a financial supervision agreement with China as the news has mostly been priced in. Financial shares have risen 34 percent since the beginning of March on expectations of the signing of the agreement. In the tech sector, TSMC <2330.tw> , the world's No.1 contract chip maker, rose 2.98 percent, pushing the electronics sub-index <.TELI> 1.2 percent higher. On Monday, Deutsche Bank sharply raised its 2009 earnings forecast on the chipmaker due to a bullish sales outlook in the longer term. [nTP341116] Hon Hai <2317.tw>, Taiwan's leading electronics gear maker, rose 2.34 percent, extending gains over the previous two sessions on a bullish revenue outlook this year. Netbook PC pioneer Asustek <2357.tw> climbed 0.24 percent after saying it would use a Linux-based operating system in one of its first two smartphones, a boost for the system's developer. [ID:nTP316410] However, shares of Nanya Technology <2408.tw>, Taiwan's No.2 DRAM maker, fell by their 7 percent daily limit. Late on Friday, the company said it would cut its capital by 66.43 percent to improve its financial structure as it grapples with losses amid oversupply and falling demand. [ID:nTP253097] HOT STOCKS -- The tourism sub-index <.THOI>, the day's biggest winner, jumped 2.82 percent. Local media cited the tourism bureau as saying the restriction on the daily number of mainland Chinese tourists to Taiwan might need to be loosened after a group was sent back due to slow government approval processes. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.46 percent Close on day 5,781.66 2009 intraday high 6,071.06 2009 intraday low
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