twn dlr/ 251133.192 /

16:32 04May09 RTRS-Taiwan dollar up steeply on China, global outlook * Highest close since Jan 10, strongest intraday this year * Foreign investors buy net T$19.5 billion in local stocks * Central bank intervenes actively to curb gains (Updates to close) TAIPEI, May 4 (Reuters) - The Taiwan dollar closed at a near four-month high on Monday due to warming trade ties with China and as signs that the worst might be over for the global economy pushed up the island's financial markets. The Taiwan dollar ended the session at T$33.192 to the U.S. dollar, the highest closing price since Jan 10. It reached T$32.833 in early trade, the highest intraday level since Dec 31 and compared with a final price of T$33.233 in the previous session. "It's the news that Chinese investments are coming in," a dealer in Taipei said. "Some investors are going all out." The prospect of investments from economic powerhouse China coming to recession-hit Taiwan helped boost market sentiment, dealers said, particularly because the two sides signed a fresh round of trade deals in late April. Investors in the region meanwhile welcomed improving global economic data, pushing Taiwan stocks <.TWII> up 5.64 percent. Foreign investors bought a net T$19.537 billion ($590 million) worth of Taiwan stocks on Monday. For the month of April, foreign funds bought a huge T$103.7 billion in the stock market. Some traders also took advantage of rates between T$32.9 and $33.0 to sell Taiwan dollars and take profit, dealers said. But active U.S. dollar buying by the central bank caused the Taiwan dollar to give up most of its gains on Monday. The central bank, which maintains the Taiwan dollar in a managed float, typically buys and sells U.S. dollars in the forex market to curb huge swings in the local currency. But the currency is seen firming further in days to come. On the main Taipei Forex Inc exchange, volume was a heavy $2.511 billion, but lower than Thursday's $3.840 billion. The Taiwan dollar weakened in the first two months of 2009 as economic data worsened, but has since firmed on signs of improvements in the global economy. On the smaller Cosmos exchange , the Taiwan dollar firmed to T$33.025 to the U.S. dollar from Thursday's close of T$33.060. (Reporting by Ralph Jennings; Editing by Chris Lewis) ((ralph.jennings@thomsonreuters.com; +886 2 2500 4882; Reuters Messaging: ralph.jennings.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
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