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Updated Thursday, August 2, 2007 0:00 am TWN, TAIPEI, Taiwan (AP)

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Taiwan shares recover partially amid weak market sentiment

Taiwan shares rose Thursday as the index recovered partially from the previous session's sharp decline.

The Weighted Price Index of the Taiwan Stock Exchange rose 58.69 points, or 0.7 percent, to close at 8,950.57 points. The index fell 4.3 percent Wednesday as stock markets fell across Asia.

Foreigners remained keen to sell amid broad lack of confidence in the market, traders said. The index briefly fell as low as 8727.64 early in the session.

"This is just a short-term correction. After two weeks of consolidation, the market should continue climbing," said Capital Securities' Diana Wu. She said the index would stay in a 8800-9200 band Friday.

Heavyweights like Taiwan Semiconductor Manufacturing and United Microelectronics rose on bargain hunting. But traders said they were expected to be the first to fall if foreign investors want to make exit.

The financial subindex fell 0.8 percent on concerns that U.S. subprime mortgage woes may affect the local financial sector, said Fubon Securities' Michael Lin.

Shin Kong Financial has invested around US$300 million (220 million) in securitization products partly backed by U.S. subprime mortgages.

TSMC rose 4 percent to NT$63.80, and UMC gained 2.8 percent to NT$18.20.

Shin Kong Financial fell 5 percent to NT$35.50.

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