32.558/495/-3.3

14:18 04Nov09 RTRS-Taiwan shares log best gain in a mth, property plays up * Construction shares lead gains on report of no tax rise * TSMC wins lawsuit against SMIC, boosting stock * Powerchip, Nanya surge on positive October sales (Updates indexes, adds quotes and details) TAIPEI, Nov 4 (Reuters) - Taiwan stocks closed up 1.97 percent on Wednesday, logging the best daily gain in a month, as property shares such as Farglory <5522.tw> led gains on news the government will not levy higher property taxes in the near term. The main TAIEX share index <.TWII> closed up 144.11 points at 7,467.04, snapping a six-session losing streak and rebounding from a one-month closing low hit in the previous session. Turnover rose to T$98 billion ($3 billion) from Tuesday's T$79 billion, the thinnest in a month, as some investors piled into financial shares that have suffered losses recently. Construction shares rebounded from sharp falls over the past two sessions after a local newspaper reported that Taiwan's Premier had said the government would not levy a higher property tax in near term as economic recovery remained on shaky ground. Real estate developer Farglory surged 5.93 percent, while the construction sub-index <.TCOI> jumped 5.39 percent. "Construction shares were the main force behind today's rebound as Premier Wu's comments removed concern about a possible rise in property taxes," said Vincent Ho, a fund manager at JP Morgan Asset Management in Taiwan. "Financial shares also got a lift as bankers were worried that a higher property tax could fend off potential home buyers." Property shares have fallen about 9 percent over the past four sessions after Taiwan government officials voiced concer over skyrocketing housing prices and urged bankers to tighten rules on housing loans. Cathay Financial <2882.tw>, the island's top listed financial holding company, rose 3.13 percent, with the banking and insurance sub-index <.TFNI> up 3.31 percent. Taiwan is expected to sign a much-anticipated financial services pact with China within the month, a Taiwan government official said on Tuesday. [ID:nTP166124] Technology majors also joined the main board's rise, with TSMC <2330.tw> up 0.68 percent and UMC <2303.tw> up 1.28 percenty. The semiconductor sub-index <.TSII> rose 1.28 percent. Contract chipmaker TSMC was further encouraged after it won a lawsuit against Chinese integrated circuit maker Semiconductor Manufacturing International Corp <0981.hk> over the theft of trade secrets and patent infringement. [ID:nN03520791] The Semiconductor Industry Association said global semiconductor sales rose during the third-quarter and forecast upbeat full-year sales as chip demand increases along with unit sales of personal computers and cell phones. [ID:nBNG185611]. DRAM makers including Powerchip <5346.two> and Nanya Tech <2408.tw> were also in the spotlight -- both stocks surged nearly 7 percent on upbeat October sales and rising contract prices. [ID:nTP173792] ---------------------TAIEX IN PERSPECTIVE----------------- Move on day 1.97 pct Close on day 7,467.04 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 Chris Lewis)) ((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
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