Taiwan stocks close at 2-wk high, TSMC lifts techs

TAIPEI, Nov 11 (Reuters) - Taiwan stocks ended up 0.98 percent at a fresh 2-week closing high on Wednesday, led by a rally in chipmaker TSMC after it settled a lawsuit with rival SMIC. The main TAIEX share index rose for a fourth straight session, finishing up 74.57 points at 7,668.06, its highest close since Oct. 26. TSMC the world's largest contract chipmaker, jumped 2.81 percent after SMIC, China's largest contract chipmaker, said on Tuesday that it would pay $200 million and give the right to purchase up to 10 percent of the company to TSMC to settle lawsuits between the two. Its smaller rival UMC jumped nearly 5 percent, sending the semiconductor sub-index 2.49 percent higher. "An alliance with SMIC could secure TSMC's leading position in the sector and help stabilise chip prices, thereby improving the health of the entire foundry sector," said Terry Kuo, a fund manager at Taishin Investment Trust Co Ltd. Dynamic random access memory (DRAM) chipmaker Winbond Electronics Corp surged more than 6 percent on an outsourcing agreement with Japanese DRAM chip maker Elpida Memory . Analysts said the main index saw mild fund inflows after Taiwan banned foreign investors from putting money in time deposits as part of an effort to curb currency speculation. Turnover rose to T$102 billion ($3.15 billion), up from Tuesday's T$96 billion. The Taiwanese market has climbed more than 64 percent this year, and is currently the third-best performing index among 30 tracked by Thomson Reuters. But fears that there will be a delay in signing a much-anticipated financial pact with China may weigh on gains in the short-term, analysts said. "Foreign investors became less enthusiastic about Taiwan stocks amid a lack of fresh incentives to trade with quarterly results out of the way and a delay in several trade pacts with China," added Taishin's Kuo. On Tuesday, a local media report said Taiwan's premier wanted regulators to explain the details of the financial pact with China to legislators before they sign it. Investors have also been betting that closer ties with China would be good for Taiwan's technology exporters, analysts said. Netbook pioneer Asustek jumped 1.57 percent after it signed a $350 million supply agreement with China's Suning Appliance Co. AU Optronics, the world's No.3 LCD maker, advanced 1.13 percent after securing orders from a procurement delegation from China. ----------------------TAIEX IN PERSPECTIVE------------------ Move on day 0.98 pct Close on day 7,668.06 2009 intraday high 7,811.92 2009 intraday low 4,164.19 All-time high 12,682.41 12 FEB 1990 -------------------------------------------------------------- ((Reporting by Joan Hsu; Editing by Jonathan Hopfner)) ASIA-PACIFIC STOCK MARKETS: Pan-Asia...... Japan........ S.Korea.... S.E.

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