tw stock

14:21 13May09 RTRS-Taiwan stocks rebound, autos jump on China hopes
* Market rises after biggest daily drop in 3 weeks on Tuesday
* Auto, tourism shares rise on new gov't investment rules
* Acer down after April sales falls

(Adds details and quotes)
By Gina Chang
TAIPEI, May 13 (Reuters) - Taiwan stocks ended up 0.82 percent
on Wednesday after marking their worst daily drop in three
weeks in the previous session, as the government's new rules for
Chinese investments helped fuel gains in auto and tourism shares.
The main TAIEX share index <.TWII> closed 52.59 points higher
at 6,485.14. Turnover was active at T$159.8 billion ($4.9
billion), but lower than Tuesday's T$176.5 billion.
"The market is bouncing back from sharp losses yesterday, and
some encouraging news from the United States, such as the U.S.
housing market might hit a bottom, also helped today's rise,"
said Karen Lin, a fund manager at Paradigm Asset Management Co.
"The regulations on Chinese investments provided mild support
since the news had already been priced in during the previous
rally," said Lin.
Taiwanese government ministries have agreed to new
regulations that will allow the Chinese to invest in the island
from June at the latest, in sectors such as autos, textiles,
shipping and tourism. [ID:nTP148757]
The automobile sub-index <.TAUI> jumped 4.48 percent, with
leading car maker Yulon Motor <2201.TW> up 6.46 percent. The
tourism sub-index <.THOI> rose 2.59 percent and hotel operator
Ambassador Hotel <2704.TW> advanced 3.15 percent.
The transportation sub-index <.TTPI> rose 2.24 percent,
further boosted after news that three major Chinese shipping
companies plan to invest in the biggest Taiwanese port in
Kaohsiung, a top port official said on Tuesday. [ID:nTP274707]
The financial sub-index <.TFNI> rose 1.06 percent, with
Chinatrust Financial <2891.TW>, Taiwan's top credit card issuer,
ending 1.31 percent higher after it said late on Tuesday it plans
to issue up to 2.5 billion shares via a private placement to
strengthen its capital base. [ID:nTP229950]
In the tech sector, shares of Acer <2353.TW>, the world's No.
3 PC brand, fell 1.04 percent after its April sales declined from
the previous month. [ID:nTP226989]
"The market's momentum could be capped as visibility in June
is still not very clear for many technology companies, and weak
April sales also sparked concerns," said Lin.
"Recent rises in the Taiwan dollar also created pressure on
tech exporters."
Exporters usually prefer a weaker local currency so they can
convert their U.S. dollar earnings to more of the Taiwan dollar.
TSMC <2330.TW> , the world's largest contract chip
maker, rose 1.81 percent, while the broader semiconductor <.TSII>
sub-index climbed 1.20 percent, helped by encouraging comments
from some sector bellwethers. The chief executive of Intel Corp
said the company's orders and billing patterns so far in
the second quarter have been slightly better than expected.
[ID:nN12342726]
Investors are watching closely as equity index provider MSCI
Barra is set to announce the results of the May 2009
Semi-Annual Index Review for MSCI Equity Indices on Thursday,
with many expecting Taiwan's weighting to be increased.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 0.82 percent
Close on day 6,485.14
2009 intraday high 6,680.97
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$32.9)
(Editing by Jonathan Hopfner)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.com@reuters.com))
((If you have a query or comment on this story, send an email to
news.feedback.asia@thomsonreuters.com))
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