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14:19 28Aug09 RTRS-Taiwan stocks rebound; Acer rises after Q2 results * Acer, Formosa Plastics rise after Q2 results * Positive U.S. data fuels export-reliant tech shares * Banking shares up on report of govt-backed fund buying * TSMC up on outsourcing orders from Fujitsu (Updates to close; adds quotes, details) TAIPEI, Aug 28 (Reuters) - Taiwan stocks closed up 1.78 percent on Friday, ending a three-session losing streak, as Acer <2353.tw> led gains after the world's No. 3 PC company reported earnings in line with market estimates. The main TAIEX share index <.TWII> finished 119.11 points higher at 6,809.86, wrapping up the day to post a 2.3 percent weekly gain. Acer, the session's fifth most active share by turnover, rose 3.25 percent, outperforming the electronics sub-index's <.TELI> 1.88 percent rise. Shares of Formosa Plastics <1301.tw>, a top Asia petrochemical producer, rose 2.19 percent after the company logged a better-than-expected second-quarter net profit. [ID:nTP226098] "Investors seemed to have turned to corporate earnings for reassurance," said Michael On, managing director at Beyond Asset Management. "Upbeat economic data from the United States also helped reinforce their confidence in a global economic recovery." The U.S. economy shrank less than expected in the second quarter, despite a record drop in inventories, and few workers filed new claims for jobless benefits last week. [ID:nN27303398] Adding to the gains on the broader market was a local media report that some government-backed funds have bought into Taiwan stocks since Wednesday to help pare losses, with the aim of keeping the main index <.TWII> above the 6,700-point level. Taiwan stocks fell more than 2 percent in the past three days as political uncertainty and worries over an H1N1 outbreak triggered a broad sell-off. Investors were also concerned that the Dalai Lama's visit to Taiwan would hurt China-related shares. Taiwan, a self-ruled island claimed by Beijing, approved the visit by the Nobel laureate to comfort victims of a deadly typhoon. [ID:nSP311815] "The last thing that the government wants is to see stocks tumble. They've taken a step ahead to buy into China-sensitive shares," said Kevin Yang, a president at Paradigm Asset Management. The banking and sub-index <.TFNI> climbed 2.41 percent, with Chinatrust Financial <2891.tw> jumping 4.16 percent. Yang said he expects the TAIEX to remain volatile until the end of next week, trading mainly between 6,700 and 6,900, before Taiwan's government announces its new cabinet members. TSMC <2330.tw>, the world's top contract chip maker, also the session's third most active share by turnover, rose 1.19 percent on outsourcing orders from Japan's Fujitsu <6702.t>. [ID:nT203855] Dell Inc , the world's No. 2 personal computer brand, reported a stronger-than-expected quarterly profit on Thursday, sending shares of its contract makers, such as Quanta <2382.tw> and Compal <2324.tw>, higher. [ID:nN27317400] Quanta and Compal, the world's top two contract laptop PC makers, advanced 2.67 percent and 2.19 percent, respectively. Shares of Asustek <2357.tw> rose 1.54 percent, after its partner, Garmin , said it had picked a U.S. carrier for a line of smartphones. [ID:nN27326271] Smartphone maker HTC <2498.tw> rose 1.99 percent after a local newspaper reported that the company will jointly develop 3G chipsets wit China Telecom <0728.hk>. Delta Electronics Inc <2308.tw>, the world's top maker of power supplies for electrical devices, surged 6.24 percent after a newspaper reported that it would launch an electronic reading device in 2010 to gain market share in the expanding e-book market. ---------------------TAIEX IN PERSPECTIVE-------------------- Move on day 1.78 pct Close on day 6,809.86 2009 intraday high 7,142.63 2009 intraday low 4,164.19 All-time high 12,682.41 12 FEB 1990 -------------------------------------------------------------- ($1=T$32.87) For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358] (Reporting by Joan Hsu; Editing by Ken Wills) ((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
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