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Updated Thursday, March 20, 2008 0:00 am TWN, The China Post news staff and agencies

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Taiwan stocks rise following rally on Wall St. from rate cut

TAIPEI, Taiwan -- Taiwan’s TAIEX stock index yesterday rose 121.53, or 1.5 percent, after the U.S. Federal Reserve’s announcement to lower key rates by 0.75 percent fueled a rally on Wall Street.

By closing, the TAIEX reached 8,179.35. The measure rose for the second straight day in its biggest increase since March 6.

In overnight trading, the Dow Jones Industrial Average rose 420 points. The hike sent Taiwan’s institutional investors on a buying spree.

In all, the three major institutional investors made a total net purchase of NT$5.197 billion, broken down into net buy of NT$2.853 billion by foreign investors, net buy of NT$2.556 billion by asset management firms, and net sale of NT$213 million by securities firms.

In individual stocks, Formosa Chemicals & Fibre Corp. surged NT$2, or 2.7 percent, to NT$77.5. The petrochemical maker controlled by billionaire Wang Yung-ching said it plans to pay a cash dividend of NT$7 on earnings from last year.

Hon Hai Precision Industry Co. gained NT$3.5, or 2.1 percent, to NT$171.5. The world’s largest contract maker of electronics will buy a Czech factory from FIC, the online news server iHNed.cz reported.

Quanta Computer Inc. added NT$0.8, or 2 percent, to NT$40 and Mitac International Corp. climbed NT$0.25, or 1 percent, to NT25.4. NEC Corp., Japan’s biggest maker of personal computers, will buy US$3 billion worth of products from Taiwan in 2008, matching the amount spent last year, the Economic Daily News reported, citing NEC Taiwan President Makoto Kubota.

NEC’s research and development center in Taiwan has cooperated with Quanta and Mitac in developing technologies for personal computers, servers and digital products, the newspaper said.

Meanwhile, the Taiwan dollar rose yesterday on foreign fund inflows after the Fed slashed interest rates.

The Taiwan dollar ended stronger at NT$30.72 to the U.S. dollar from the previous close of NT$30.747. The Taiwan dollar has gained 5.3 percent since the beginning of the year.

Volume on the main Taipei Forex Inc. exchange was US$1.305 billion, compared with US$1.14 billion a day earlier.

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