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14:19 26Oct09 -Taiwan stocks rise as banks, China plays gain * Financials up on Taiwan-China economic pact hopes * Asustek rises on strong 2010 shipment target * Chi Mei falls ahead of Q3 results (Updates indexes, adds quotes and details) TAIPEI, Oct 26 (Reuters) - Taiwan stocks ended up 0.25 percent on Monday as media reports that Taiwan and China could speed up negotiation on an economic agreement fuelled gains in financial shares like Chinatrust Financial <2891.tw>. The main TAIEX share index <.TWII> finished up 19.12 points at 7,668.40, giving up some of its gains earlier in the session. Turnover was thin at T$105 billion ($3.24 billion), lower than Friday's T$118 billion. "The main index got a temporary lift from China plays such as plastic and financial shares, but later succumbed to selling," said Michael On, managing director at Beyond Asset Management. Financial shares led the main index higher, with Chinatrust Financial rising 0.94 percent after local media reported that China and Taiwan could begin negotiations on an economic agreement earlier than expected. On said the main index should trade mainly between 7,600 and 7,800 this week, with companies that report better-than-expected quarterly earnings leading mild gains. "Third quarter earnings are expected to turn out well, but the broader market has already priced in much of those expectations," said Tom Tang, a vice president at Masterlink Investment Advisory. TSMC <2330.tw> and UMC <2303.tw> , the world's two largest contract chip makers, both ended flat. Both are due to report third- quarter earnings later this week. (For a preview on TSMC and UMC's quarterly results, double-click [ID:nTP185409]). The TAIEX had risen more than 65 percent since the beginning of this year as investors bet that warming ties with economic powerhouse China could help the island's export-reliant economy. In September, Taiwan logged its smallest decline in export orders since last year due to stronger demand from China. [ID:nTP295354] This helped technology companies that have greater exposure to China's market such as Hon Hai <2317.tw>, which rose 1.48 percent, while the electronics sub-index <.TELI> inched down 0.1 percent. PC shares also rose, with netbook PC pioneer Asustek <2357.tw> jumping more than 2 percent. Asustek's chief executive officer said on Friday the company aimed for its notebook PC shipments to grow faster than the overall industry in 2010 on expectations for an uptick in demand. [ID:nTP290911] Asustek's bigger rival Acer <2353.tw>, the world's No.2 PC brand, edged up 0.24 percent ahead of its third-quarter results on Friday. LCD maker Chi Mei Optoelectronics <3009.tw> fell 0.59 percent ahead of its third-quarter earnings, while the optoelectronics sub-index <.TOPI> shed 1.23 percent. The firm reported market-beating results after the market close, helped by increasing demand for tech buys. [ID:nTPU001782] ---------------------TAIEX IN PERSPECTIVE------------------ Move on day 0.25 pct Close on day 7,668.40 2009 intraday high 7,811.92 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)) ((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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