twn stock 0430/ +33

14:29 30Apr09 RTRS-China deals power Taiwan stocks to best gain in 18 years * Best 1-day gain in 18 yrs on Chinese investment * Far Eastone limit-up on China Mobile bid * TSMC, Asustek limit-up ahead of Q1 earnings * UMC limit-up on plan to acquire Hejian (Adds details and quotes) By Gina Chang TAIPEI, April 30 (Reuters) - Taiwan stocks closed 6.74 percent higher on Thursday, their best one-day percentage rise in over 18 years, with Far Eastone <4904.tw> leading gains after China Mobile <0941.hk> planned to invest in the telecom carrier. The main TAIEX share index <.TWII> finished 378.51 points higher at 5,992.57, tracking gains on Wall Street and other Asian bourses. The day's rise was the market's biggest daily percentage gain since August 1991, according to Taiwan stock exchange data. Turnover was active at T$136.9 billion ($4.1 billion), rising from Wednesday's T$112.5 billion. The market will be closed for the Labour Day holiday on Friday and will resume trade on Monday. Telecoms carrier Far Eastone closed by its daily maximum limit after China Mobile said it would pay a 14 percent premium for a 12 percent stake in the Taiwan company. [nTP279271] "The tie-up is a huge boost to market sentiment because it shows the beginning of a future flow of Chinese investment in local companies," said Alex Huang, a vice president at Mega International Securities. Chinese investors would be allowed to put their money in Taiwan's manufacturing, infrastructure-building and services sectors when rules regulating their investments are implemented in May, local media reported. Hopes that Chinese investors will be able to put money in Taiwan's stock market as soon as next week also boosted the financial sub-index <.TFNI>, which jumped 6.84 percent. Cathay Financial <2882.tw>, Taiwan's top listed financial holding firm, jumped 6.93 percent limit-up. Another sentiment-lifting deal was news that UMC <2303.tw> , the world's No.2 contract chipmaker, would spend $285 million buying China-based chipmaker Hejian to tap robust demand on the mainland. [ID:nTP130150] The chipmaker jumped limit-up after posting a net loss of T$8.16 billion in January-March. That compared with a record loss of T$23.5 billion in the fourth quarter of 2008 and was worse than analyst estimates for a loss of T$5.78 billion. UMC's larger rival, TSMC <2330.tw> , surged limit-up after Japan's Fujitsu Ltd <6702.t> on Thursday said it was in talks with the chipmaker to outsource system chip production as it searches for ways to revive its struggling semiconductor operations. [ID:nT278321] Minutes before the market close, TSMC announced its weakest quarterly earnings in nearly eight year due to slower demand. [ID:nTPU001336] Shares of netbook pioneer Asustek <2357.tw> went limit-up. The firm posted a 94 percent fall in its first-quarter net profit after the market closed on Thursday. [nTPV001335] The electronics sub-index <.TELI> ended the session 6.75 percent higher while the semiconductor sub-index <.TSII> rose 6.88 percent. The euphoric mood also spread to the foreign exchange market, with the Taiwan dollar <.TWII> rising as much as 1.5 percent to a 2-1/2-week high during trade, largely
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