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14:38 20Jul09 RTRS-Taiwan stocks rise on gains in banks and techs * Technology shares rise on better earnings prospects * AU Optronics up ahead of Q2 earnings on Thursday * TAIEX seen trading between 6,800-7,084 this week (Adds closing price, quotes) TAIPEI, July 20 (Reuters) - Taiwan stocks rose 1.28 percent on Monday to a fresh over one-month closing high as upbeat earnings from U.S. firms boosted tech exporters, while banking shares gained on hopes of a financial agreement with China. The main TAIEX shares index <.TWII> ended up 87.87 points at 6,938.86, its highest close since June 2. Turnover was light, with T$143 billion ($4.3 billion) worth of shares changing hands, as sentiment turned cautious before major technology firms in Taiwan report quarterly earnings later this week. The banking and insurance sub-index <.TFNI> outperformed the main board to gain 2.28 percent, with Cathay Financial Holding <2882.tw> rising 1.36 percent. Banking shares climbed after a newspaper reported that top leaders from Taiwan and China would soon meet to discuss the signing of a FTA-like financial pact known as a Economic Cooperation Framework Agreement (ECFA), deemed by many as crucial for Taiwan's economic competitiveness. "Banking shares and electronics shares are taking turns to rise, with banking shares in the lead today as officials from Taiwan and China will exchange opinions about the ECFA soon," said Tu Jin-lung, an analyst at Grand Cathay Securities who expects the index to trade between 6,800-7,084 this week. Electronics shares continued to thrive after strong earnings from technology giants such as IBM and Intel Corp . "Despite gains in China-related issues, investors are chasing electronics shares as they bet on better earnings in the third quarter as peak season approaches," said Tu. The electronics sub-index <.TELI> gained 0.91 percent, with chip heavyweight Taiwan Semiconductor Manufacturing Co Ltd <2330.tw> rising 1.48 percent and its smaller rival UMC <2303.tw> gaining 1.21 percent. TSMC and UMC, the world's top two contract chip makers, are due to report their second-quarter earnings next week. LCD maker AU Optronics <2409.tw> rose 1.57 percent ahead of its second-quarter earnings on Thursday, outperforming a 0.77 percent rise on the broader optoelectronics sub-index <.TOPI>. LCD shares have been faring well amid the global economic recession, as consumers replace their bulky TV sets with new, flat-panel models that have boosted demand for panels across key markets such as the United States and China. Tourism shares were also in the spotlight after a local newspaper reported that Taiwan and China were likely to set up tourism representative offices between each other at the end of this year. The tourism sub-index <.THOI> rose 1.53 percent, as hotelier Formosa Hotel <2707.tw>> gained 1.94 percent on expectations of more Chinese tourists. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 1.28 percent Close on day 6,938.86 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] (Reporting by Joan Hsu; Editing by Jonathan Hopfner) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: gina.chang.reuters.com@reuters.net)) ((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 Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary [WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts
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