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14:46 14Oct09 RTRS-Chip makers push Taiwan stocks near 16-mth high * Technology shares boosted by Intel's earnings, outlook * Chinatrust rises after losing bid for AIG's Nan Shan * China plays edge up on closer China ties (Adds quotes, details) TAIPEI, Oct 14 (Reuters) - Taiwan stocks rose 1.31 percent to their highest close in nearly 16 months on Wednesday, with chip makers including TSMC <2330.tw> rising after Intel reported quarterly earnings that beat market expectations. The main TAIEX share index <.TWII> closed up 99.15 points at 7,695.75, its highest closing level since June 26, 2008. Turnover was moderate at T$148 billion ($4.6 billion), compared with Tuesday's T$129 billion. TSMC , the world's largest contract chipmaker, rose 2.75 percent, while its smaller rival UMC <2303.tw> jumped 4.87 percent. "Forecast-beating results and an upbeat outlook from Intel was quite uplifting, as they eased investors' worries over a slow fourth quarter," said John Chiu, a vice president at Fuh Hwa Securities Investment Trust. TSMC and UMC topped the list of most-active stock by turnover and volume, respectively. A recovery in demand for personal computers also boosted shares of PC makers. After its stellar quarterly results, Intel told Reuters that it is comfortable with analysts' estimates of about 10 percent growth in global PC shipments next year on increasing appetite for portable computers. [ID:nTP240821] Acer <2353.tw>, the world's No.3 PC brand, rose 1.36 percent after saying its third-quarter revenue would be up about 5 percent amid a rebound in tech demand. [ID:nTP9260919] Chiu said shares of Taiwan companies with large investments in China, including food and transportation companies, could help support further gains in the main index on renewed expectations of closer trade ties with China. Top negotiators from Taiwan and China are planning a meeting in the second half of December in the island to further boost trade. [ID:nTP364107] Financial shares in Taiwan edged up before their U.S. peers report third-quarter earnings later this week. The bank and insurance sub-index <.TFNI> was up 0.61 percent. Chinatrust Financial <2891.tw>, Taiwan's top credit card issuer, reversed losses in the previous session to rise 0.93 percent, after it lost a bid to Primus on AIG's life insurance unit in Taiwan. [ID:nTP307656] HOT STOCKS -- ProMOS Tech <5387.two> jumped 6.83 percent after Hynix Semiconductor <000660.ks> said an improved global economy and the launch of Microsoft's Windows 7 operating system were expected to support demand for memory chips through the first half of 2010. -- Innolux Display <3481.tw>, the world's No.2 LCD monitor maker, rose 3.01 percent after a newspaper reported that it could supply panels to Apple . -- Chip designer Mediatek Inc <2454.tw> rose 1.2 percent after a newspaper reported that it is likely to sell the 16 million shares it owns in smaller rival ALi Corp <3041.tw> by the end of the year to focus more on its core business. ALi shares rose 4 percent. ---------------------TAIEX IN PERSPECTIVE------------------ Move on day 1.31 pct Close on day 7,695.75 2009 intraday high 7,700.42 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 Kim Coghill)) ((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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