twn stock / 32.994 / 930 / -2.39

14:17 18May09 RTRS-Taiwan stocks end higher on China hopes * Market rises to one-week closing high * Hopes of Chinese investments lift transport, tourism shares * Taishin Financial rises on tie-up hopes with Chinese banks (Adds details and quotes) By Gina Chang TAIPEI, May 18 (Reuters) - Taiwan stocks closed 1.37 percent higher on Monday, outpacing other major Asian bourses, as Chinese measures to forge closer trade ties with the island spurred buying in transport, tourism and property shares. The main TAIEX index <.TWII> ended up 88.72 points at 6,577.81, its strongest finish in a week and near an eight-month closing high reached last week. Turnover was active at T$166.5 billion ($5 billion), slightly higher than T$164 billion in the previous session. "China's measures gave a boost to the market, helping it to outperform other regional bourses," said John Chiu, a vice president of Fuh Hwa Investment Trust. In a cross-Strait forum over the weekend, China said it would organise visits to Taiwan in industries such as electronics, communications, biomedicine, marine transport, civil construction, textiles and vehicles to discuss investment plans. [nSHA161491] The transportation sub-index <.TTPI> was a big winner, jumping 4.44 percent. The gain also came after Taiwan's transport minister told Reuters in an interview that the island would begin regular flights with China in mid-July. [ID:nTP153257] China Airlines <2610.tw> rose 1.35 percent and Eva Airways <2618.tw> climbed 2.93 percent. The construction sub-index <.TCOI> rose 4.35 percent, with real estate developer Farglory <5522.tw> ending up by its 7 percent limit. The tourism sub-index <.THOI> recouped early losses to close the session 3.96 percent higher. Hotel operator Formosa Hotel <2707.tw> went limit-up, while Ambassador Hotel <2704.tw> rose 1.39 percent. The TAIEX could be pressured after recent sharp advances, analysts said, but some optimists projected it to rise further due to ample liquidity in the market and as global markets have showed signs of improvement in recent months. The market has risen 43 percent so far this year. More funds are expected to flow into the equity market after a newspaper said a government pension fund had awarded six mandates worth T$24 billion to fund arms of ING , HSBC <0005.hk> , Cathay Financial <2882.tw>, Fubon Financial <2881.tw> and two others. Cathay Financial, Taiwan's top listed financial holding firm, rose 1.09 percent, pushing the financial sub-index <.TFNI> up 2.28 percent. Fubon Financial, the island's fifth-largest financial holding firm, rose 1.97 percent. Fubon's chairman on Saturday said the firm would be keen to take additional equity stakes in Chinese commercial banks. [ID:nSHA149302] Taishin Financial <2887.tw>, Taiwan's No.3 financial holding firm, closed limit-up after a senior company executive said it was in talks with more than five Chinese banks on strategic alliances. [ID:nTP69397] Last Friday, Taishin said it would sell its brokerage arm to KGI Securities <6008.two> for T$29 billion. [ID:nTP17043] Shares of KGI jumped 6.91 percent, ending limit-up for a second straight session. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 1.37 percent Close on day 6,577.81 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$33.0) (Editing by Chris Lewis) ((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)) ASIA-PACIFIC STOCK MARKETS:
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