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14:19 06May09 RTRS-Taiwan stocks end at 8-mth high on China hopes * Market gains 17 percent over past four sessions * Financials, auto shares up on hopes of Chinese investment * Epistar, Huga jump on report of tie-up * Market turnover at 14-mth high (Adds details and quotes) TAIPEI, May 6 (Reuters) - Taiwan stocks rose 2.93 percent on Wednesday in active trade to an eight-month closing high, as expectations over an influx of Chinese investment continued to boost financial and auto shares. The main TAIEX share index <.TWII> closed 186.76 points higher at 6,566.70, its strongest finish since Sept. 8, 2008 and bringing its gain to 17 percent since last Thursday. Turnover rose to a 14-month high of T$240 billion ($7.3 billion) from Tuesday's T$213.4 billion. "Foreign investors are still actively buying Taiwan stocks due to expectations of Chinese investments," said John Chiu, a vice president of Fuh Hwa Securities Investment Trust. "And with Taiwan's economy showing signs of recovery, the market could still rise further in the short term," said Chiu. He added that key factors affecting the market's upward momentum would be whether foreign equity buying pauses and if technology companies receive more orders in coming months. The banking and insurance sub-index <.TFNI> jumped 4.57 percent, extending a 50 percent jump since early March. Chinatrust Financial <2891.tw>, Taiwan's top credit card issuer, ended limit-up and Cathay Financial <2882.tw>, the island's largest listed financial holding firm, jumped 6.85 percent. Analysts believe Chinese banks could pursue stakes in Chinatrust, Cathay Financial, Yuanta Financial <2885.tw> and Taishin <2887.tw> when Taiwan opens up to such investments, a local newspaper reported on Wednesday. Shares of Yuanta and Taishin both closed 7 percent limit-up. Cathay Financial will hold its investor conference later in the day, with investors focusing on any potential tie-up opportunities with Chinese firms. Foreign institutional investors have been active buyers, loading up on T$47 billion worth of Taiwan shares so far this month and with net purchases of T$104 billion in April. (For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358]) The automobile sub-index <.TAUI>, the top winner of all sub-indexes, rose 6.88 percent as Taiwan plans to open up its auto sector and part of its flagship technology industry to investments from China. [ID:nTP193538] Leading car maker Yulon Motor <2201.tw> was 6.86 percent limit-up. News that 10 of the 19 U.S. banks being stress tested might need to raise more capital had little impact on local stocks, but sentiment could be dampened and gains capped when the U.S. government releases the results on Thursday. In the tech sector, Taiwan's leading LED maker Epistar <2448.tw> went limit-up after a newspaper cited market talk on Wednesday the firm plans to buy No. 2 LED maker Huga Optotech <8199.two> as the sector consolidates. Shares of Huga surged 20.2 percent on the grey market, where small-cap companies trade before they can apply to list on the main board. The optoelectronics sub-index <.TOPI> rose 3.83 percent and the electronics sub-index <.TELI> gained 2.55 percent. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 2.93 percent Close on day 6,566.70 2009 intraday high 6,570.50 2009 intraday low 4,164.19 All time high 12,682.41 12 FEB 1990 ------------------------------------------------------------ (US$1=T$33.1) (Reporting by Gina Chang, Editing by Jacqueline Wong) ((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: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS] OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU] DIARIES & DATA: IPO diary & data
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