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14:27 14Aug09 -Taiwan stocks hit 2-week closing high, Asustek up * Asustek up on hopes of stronger Q3 sales * AU gains on growing demand, Nomura upgrade * Siliconware falls after announcing investment in TMC * TAIEX to test 7,300 points next week, eyes on more H1 pfts (Updates to indexes, quotes and details) TAIPEI, Aug 14 (Reuters) - Taiwan stocks closed up 0.49 percent on Friday to a two-week closing high, led by gains in netbook pioneer Asustek <2357.tw> and other major technology shares due to expectations of stronger sales and earnings. The main TAIEX share index <.TWII> finished up 34.55 points at 7,069.51, a closing level not seen since July 31. The TAIEX wrapped up the day to post a near 3 percent gain for the week. Turnover was moderate at T$124 billion ($3.8 billion), compared with Thursday's T$120 billion. Asustek rose 3.67 percent, pushing the computer and peripheral sub-index <.TCPI> 1.22 percent higher. Goldman Sachs said in a report the company would make an operating profit after breaking even in the second quarter as it clears inventory and as demand picks up following the launch of Window 7. "It was quite encouraging for investors to see the main index has finally returned and stayed above the 7,000 level" after hovering around 6,800 points in the past week, said Chang Chi-sheng, a fund manager at Uni-President Asset Management. "But gains were limited as the main index tracked losses in China stocks and profit-taking pressure mounts." The Shanghai share index <.SSEC> extended early losses on Friday to fall about 3 percent, on concerns over an increased supply of shares amid new listing and rights issues. [ID:nBJD001061] Some major technology shares tracked gains among U.S. tech companies. TSMC <2330.tw>, the world's largest contract chip maker, rose 0.51 percent after positive earnings reports in the United States, a key export market for Taiwan companies. However, Mediatek <2454.tw>, Taiwan's biggest chip designer and supplier, gave up early gains to fall 3.11 percent after investors locked in recent profits. Chang said he expects the main index to test as high as 7,300 next week, but investors would likely remain cautious ahead of more first-half earnings reports by the end of August. Nomura raised ratings on major liquid crystal display (LCD) makers, including AU Optronics <2409.tw> and Chi Mei Optoelectronics Corp <3009.tw>, following its industry view upgrade. Shares of AU Optronics rose 0.85 percent, while its smaller rival Chi Mei Optoelectronics, reversed early gains to lose 0.55 percent, after Nomura raised them to "neutral" from "reduce". [nSEL000742] A local newspaper cited Citigroup as saying a possible drop in panel prices could be delayed to November from its previous forecast of September, due to a shortage after an earthquake disrupted glass production in Japan. Construction and steel shares rose after a local newspaper said Taiwan's cabinet had decided to set aside a special budget of up to T$200 billion for reconstruction after Typhoon Morakot left a path of destruction as it swept over the island. The construction sub-index <.TCOI> rose 1.63 percent and the steel sub-index <.TSTI> rose 1.61 percent. Shares of chip packager Siliconware <2325.tw> fell 1.05 percent. The company said on Thursday it would invest up to T$2 billion ($61 million) in Taiwan Memory Co (TMC). [ID:nTP160165] The government-backed TMC was officially established in late July, with an initial capital of T$500,000. TMC would use Elpida's technology to help rescue the island's struggling DRAM sector, which competes with global giants in South Korea. [ID:nTP104915] Shares of Fubon Financial Holding <2881.tw>, parent of Taiwan's No.2 insurer Fubon Life, closed 0.61 percent lower on news that the firm will participate in a fund-raising plan by China's Xiamen Commercial Bank by the end of the year. [ID:nTP155876] ---------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.49 pct Close on day 7,069.51 2009 intraday high 7,142.63 2009 intraday low 4,164.19 All-time high 12,682.41 12 FEB
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