stock / 32.875/ 604/ +3.2

14:41 22Jul09 RTRS-Taiwan stocks hit 11-mth closing high on banks * Taiwan stocks buoyed by upbeat U.S. earnings, banks * AU, TSMC, UMC fall ahead of quarterly earnings reports * DRAM shares mixed after gov't funding plan * Index seen trading between 6,600-7,100 points (Updates quotes, details and indexes) TAIPEI, July 22 (Reuters) - Taiwan stocks rose 0.46 percent on Wednesday to hit a near 11-month closing high as positive U.S. corporate earnings boosted sentiment, with gains fueled by banking shares such as Fubon <2881.tw> on warming China ties. Technology shares also gained after Apple Inc reported stronger than expected quarterly earnings, sending Hon Hai <2317.tw> and other suppliers higher. The main TAIEX share index <.TWII> rose above 7,000 by midday before losing some gains to end up 31.98 points at 6,985.32, a closing high not seen since August 29, 2008. Turnover amounted to T$145 billion ($4.42 billion), less than Tuesday's T$151 billion. Taiwan stocks had risen over 50 percent so far this year on signs of a global economic recovery, making it one of the best performers among the 30 global indexes tracked by Reuters. "Banking shares rose as a result of reviving hope on warming trade ties with China, but the gains have waned since the shares have priced in their positives," said Kevin Chung, an analyst at Jih Sun Investment Consulting Co. The banking and insurance sub-index <.TFNI> outperformed the big board to gain 0.58 percent. Fubon Financial Holding climbed 3.73 percent after a local newspaper reported that three Chinese banks would soon set up representative offices in Taiwan, reviving hopes for stronger economic ties. "The TAIEX index is under massive pressure as it approaches its 2009 high," Chung said. "And it's going to linger within a range of 6,600 and 7,100, until major technology companies provide clearer signs with their quarterly earnings next week." AU Optronics <2409.tw> , the world's No.3 flat-panel maker, dropped 2.19 percent ahead of its quarterly earnings report on Thursday. The broader electronics sub-index <.TELI> gained 0.45 percent after a strong earnings report from Apple Inc. Hon Hai Precision Industry, a major electronic parts supplier to Apple, jumped 2.25 percent on expectation of new orders. TSMC <2330.tw> and UMC <2303.tw> , the world's top two contract chip makers, dropped 0.36 percent and 1.17 percent, respectively, before they report second-quarter earnings next week. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) probably made its largest profit in three quarters in the second quarter, while money-losing rival United Microelectronics Corp (UMC) could have returned to profit on growing demand. [ID:nTP35599] Analysts also said Taiwan stocks got a boost after Taiwan's labour pension fund announced plans to ramp up investment in local and overseas stocks by T$73 billion next year on expectations that a global recovery will gather speed. [ID:nTP113621] "I think that an increase in stock purchases by the pension fund points to a expected recovery in Taiwan's economy, which fits well with investor's expectations," added Chung. Shares of DRAM makers were mixed after Taiwan's government announced a plan to inject funds into the sector if manufacturers could map out restructuring proposals that help the whole memory chip sector. [ID:nTP120897] Powerchip <5346.two> and Nanya Tech <2408.tw> gained 0.77 percent and 4.25 percent, respectively, while Taiwan's No.3 DRAM chipmaker ProMOS <5387.two> dropped 1.72 percent. The DRAM sector is grappling with its worst-ever downturn on oversupply and falling demand. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.46 percent Close on day 6,985.32 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 TOP NEWS: For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks <0#.index> Currency rates Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225> FTSE 100 <.FTSE> Debt <0#usbmk=> Taiwan dollar LME price overview TAIWAN MARKET: Taiwan equity mkt TAIEX <.TWII><.TV.TW> Other indices <0#.inx.tw> TAISDAQ <.TWOII><.TV.TWO> TAIMEX Taiwan index futures <0#tx:> MSCI Taiwan index <.MSTW> SIMEX Taiwan index futures <0#stw:> FTSE TW50 index <.FTSETW50> Keywords: MARKETS TAIWAN STOCKS
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