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14:26 02Jun09 RTRS-Taiwan stocks off 9-mth high as exporters fall * Stronger Taiwan dollar weighs on tech exporters * Main index hits 7,000-pt level, but quickly gave up gains * LCD stocks gain on hopes of more Chinese orders * Fubon rises after welcoming Chinese to take stake * Chunghwa Telecom up after saying open to China investments (Adds details and quotes) By Gina Chang TAIPEI, June 2 (Reuters) - Taiwan stocks inched lower on Tuesday in volatile trade as investors grew cautious after recent gains, with a stronger local currency putting further pressure on tech exporters such as HTC <2498.tw>. The main TAIEX share index <.TWII> ended down 0.07 percent, or 5.02 points at 6,949.08, after rising above the key 7,000- point level early in the session and pulling back from a nine-month closing high reached the previous session. The market has been on an upward trend, gaining 64 percent, since touching a trough late in January. Turnover was at its most active level in one month, at T$232.2 billion ($7.2 billion), compared with T$201.9 billion on Monday. Shares of smartphone maker HTC Corp fell 3.54 percent, while the electronics sub-index <.TELI> edged up 0.11 percent. "Sharp gains on Wall Street helped the market to open higher today," said Bevan Yeh, a senior fund manager at Prudential Financial Securities Investment Trust. "But the momentum was checked because investors were taking profits from some smaller technology shares. Recent rises in the Taiwan dollar also prompted investors to shift money (from tech exporters) to non-tech stocks." A stronger local currency usually causes forex losses for exporters when they convert overseas earnings back home. The Taiwan dollar was hovering at an eight-month high on Tuesday due to foreign fund inflows, though an upward blip in the U.S. dollar and the island's central bank kept the rate in check. [ID:nTP180462] However, advances in LCD makers helped support tech shares' gains. The China Video Industry Association's secretary-general said China would buy as many LCD panels as Taiwan manufacturers could provide, a local newspaper reported on Tuesday. Shares of AU Optronics <2409.tw> and Chi Mei <3009.tw>, Taiwan's top two flat-panel makers, rose 0.15 percent and 2.4 percent, respectively. In financial news, Fubon <2881.tw>, parent of Taiwan's No.2 life insurer, said it would welcome Chinese investors to take up to a 20 percent stake in the company. [ID:nTPU001413] Fubon shares rose 0.63 percent, but the banking and insurance sub-index <.TFNI> closed down 0.96 percent. China Development Financial <2883.tw>, parent of Taiwan's top venture capital firm, gave up early gains to end down 1.4 percent. The firm told Reuters on Monday it planned to raise investments in Taiwan and China to a record T$10 billion this year. [ID:nTP130097] HOT STOCKS -- Chunghwa Telecom <2412.tw>, the island's largest telecom operator, climbed 0.32 percent after the company chairman told Reuters the firm was open to investments from China or investing on the mainland once regulations allow. [ID:nSP445261] -- ASE <2311.tw>, the world's top chip packager, was up 0.74 percent. BNP Paribas on Tuesday upgraded its rating for the packager to "buy" from "reduce" due to an upbeat sales outlook. [ID:nTP183496] --------------------TAIEX IN PERSPECTIVE-------------------- Move on day -0.07 percent Close on day 6,949.08 2009 intraday high 7,084.83 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$32.3) (Reporting by Gina Chang; Editing by Ken Wills) ((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
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