Taiwan stocks rose 0.99 per cent to a two-week closing high on Thursday, with big exporters including TSMC and HTC Corp leading the way after Wall Street gains fuelled optimism over technology demand.
PC memory chipmakers Nanya Technology Corp and Inotera Memories Inc also outperformed on bigger capital spending forecasts as new personal computers and smartphones boost fresh demand for chips.
“Many tech companies have reported better June sales and that’s evidence of growing demand,” said John Chiu, a vice-president at Fuh Hwa Securities Investment Trust.
The main TAIEX share index closed up 74.39 points at 7,608.85 after US stocks logged their best one-day gain in about six weeks.
“I think the rebound might lose steam very soon because we have to see if tech demand will slow in coming months,” said Alvin Teng, analyst at Sinopac Securities, referring to potential impact from financial troubles in Europe.
Selling pressure could emerge around 7,700 points, Teng said.
Nanya Tech and Inotera jumped 1.2 per cent and 2.75 per cent, respectively, after sources said the companies planned to raise 2010 capital spending forecasts to boost DRAM capacity and upgrade technology.
“The move is positive and helps prop up prices,” Fuh Hwa’s Chiu said. “Bigger capex is helpful and we think that will help them return to profit from the third quarter, so the earnings outlook for next year is not bad.”
HTC Corp rose 5.39 per cent after a local newspaper said on Thursday that the company would introduce branded smartphones in China at the end of July. The gain helped lift the electronics sub-index 1.7 per cent.
Top contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd jumped 1.51 per cent, while smaller rival United Microelectronics Corp (UMC) was flat before it announces June sales figures later on Thursday.
LCD maker Chimei Innolux Corp rose 2.33 per cent after it said on Wednesday that it had filed suits against Sony Corp in the United States and China over alleged patent infringements.
The financial sector inched down 0.01 per cent.
Foreign investors have sold T$20.14 billion ($626.2 million) of Taiwan shares as of Wednesday this month. For the second quarter ended June 30, they sold a net T$23.2 billion, compared with net buying of T$26.9 billion in the first quarter.