TAIEX index up 45.59 points on Wall St. rally, looming ECFA

By closing, TAIEX rose to 7,463.05, an increase of 0.6 percent. The measure added 1.7 percent for the week, the first advance in three weeks.

Overnight on Wall Street, a bright forecast from Cisco Systems and upbeat economic news propelled the Dow Jones Industrials back to above 10,000. The rally, coming a day before the U.S. government's October employment report, showed investors' growing confidence over an economic recovery.

Cisco Systems Inc. boosted hopes for the technology industry after the largest maker of computer-networking gear forecasted revenue growth for the first time in a year. The forecasts of CEO John Chambers strongly influenced Wall Street, and his announcement that the company would begin hiring workers caused jubilance among investors.

Also, the U.S. government said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January and fewer than economists had forecasted.

The Dow rose 203.82, or 2.1 percent, to 10,005.96, its first close above 10,000 since Oct. 22, and 86 points below its high of the year. It was the sixth time in 2009 that all 30 stocks in the index rose and it was the biggest advance since a gain of 257 points on July 15.

The broader Standard & Poor's 500 index rose 20.13, or 1.9 percent, to 1,066.63, its fourth straight gain.

The Nasdaq rose 49.80, or 2.4 percent, to 2,105.32, its biggest gain since a 2.5 percent spike on July 23.

At the same time, Vice Premier Eric Chu mentioned during a conference in Taipei that “new developments” on a cross-strait financial memorandum of understanding would come “within the next few days.”

With the MOU, mainland offices of Taiwan banks will immediately be upgraded to branches and will be able to provide financial services to Taiwan businesspeople there.

Financial shares rose on Chu's remarks. Cathay Financial Holding rose NT$0.5, or 0.86 percent, to NT$58.9, while Fubon Financial Holding rose NT$0.1, or NT$0.5 percent, to NT$20.2.

In other stocks, China Steel Corp. climbed 0.7 percent to NT$29.2. Fourth-quarter orders are full at Taiwan's largest steelmaker, the Economic Daily News reported yesterday, without citing sources.

Lite-On IT Corp. added 2 percent to NT$27.8 after the maker of compact discs said unconsolidated sales in October climbed 30 percent to NT$4 billion from a year ago.

ProMOS Technologies Inc. climbed 3.9 percent to NT$2.15, its highest since Oct. 28, after Elpida Memory Inc. said it will outsource some production of its 65-nanometer semiconductors to the Taiwan chipmaker.

Siliconware Precision Industries Co. added 1.2 percent to NT$43.50, its steepest gain since Oct. 16, after the packager and tester of semiconductors said unconsolidated sales in October climbed 7.5 percent from a year earlier to NT$6 billion.

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