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14:35 10Sep09 RTRS-Taiwan stocks hit 14-mth high as banks rally * Taiwan stocks hit 14-mth high after cabinet reshuffle * Bank shares rally on hopes of Taiwan-China MOU * TSMC advances before Aug sales report (Updates to close) TAIPEI, Sept 10 (Reuters) - Taiwan stocks rose 1.12 percent to a 14-month closing high on Thursday as financial shares rallied on hopes Taiwan will soon sign a financial services agreement with China, following a cabinet reshuffle. The main TAIEX share index <.TWII> ended 81.36 points higher at 7,332.08, the highest closing level since July 24, 2008, recovering from its worst single daily loss in two weeks in the previous session. The banking and insurance sub-index <.TFNI> was the second-biggest winner with a 3.38 percent jump. Chinatrust Financial <2891.tw> and Cathay Financial <2882.tw> were the most actively traded issues by volume and turnover, respectively. "Here we have a new cabinet which is keen to speed up the signing of the much anticipated MOU (memorandum of understanding). I think the market is reacting quite positively to the combination," said Eddy Chen, a vice president at National Investment Trust Co Ltd. Taiwan replaced 11 ministers, including the economic minister, in a cabinet reshuffle late on Wednesday prompted by criticism of the government's response to a deadly typhoon hast month. [ID:nTP50290] It said on Thursday it expected to sign a financial services agreement with China soon, but no timetable has been set and some tough issues issues remain reresolved. [ID:nTP279863] Turnover climbed to its highest level in more than a month, with T$162 billion ($5 billion) worth of shares changing hands, versus T$137 billion a day earlier. Chinatrust, which a source said over the weekend had outbid three rivals in buying AIG's Taiwan life insurance unit, rose 2.05 percent. [ID:nPEK111026] Fubon Financial, the island's first financial holding firm that has bought a stake of a Chinese lender, soared 5.4 percent to a 15-month high. Cathay Financial, Taiwan's top listed financial holding firm, ended up 3.5 percent. But some analysts warned that the gains in financial stocks could not sustain. "There was no significant development in terms of signing the MOU, and we know nothing more than we did a month ago," said Victor Tseng, an analyst at KGI Securities. The main board also got a lift from the semiconductor sub-index <.TSII>, which closed 1.47 percent higher. TSMC <2330.tw>, the world's largest contract chip maker, rose 2.42 percent. Minutes before the market close, TSMC posted a 7 percent decline in its August sales from a year ago. [ID:TPU001667] Other gainers included shares of notebook PC makers such as Acer <2353.tw>, which rose 2.39 percent, as the world's No.3 PC brand and HP are expected to gain from consumer demand in China, India and other resilient Asian markets. [ID:nTP38837] ---------------------TAIEX IN PERSPECTIVE------------------ Move on day 1.12 pct Close on day 7,332.08 2009 intraday high 7,507.49 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 Kazunori Takada) ((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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