Taiwan stocks edge higher, LCDs, tourism shares lead

TAIPEI, Nov 12 (Reuters) - Taiwan stocks rose 0.42 percent on Thursday as technology shares including Chi Mei Optoelectronics gained, while tourism shares advanced on further signs of improving cross-Strait relations. As of 0200 GMT, the main TAIEX shares index was up 32.71 points at 7,700,77, the highest intraday level in more than two weeks. "Taiwan stocks are slowly stacking up gains on growing optimism over an improving economy and as stabilising stock markets prompted mild but continual foreign fund inflows," said Tom Tang, a vice-president at Masterlink Investment Advisory. LCD maker Chi Mei Optoelectronics jumped more than 5 percent, pushing the optoelectronics sub-index up 1.45 percent and the broader technology sector up 0.33 percent. Larger rival AU Optronics, the world's No.3 flat panel maker, advanced 0.96 percent. "LCD shares are favourable as demand in China in the first quarter next year is expected to rise," said Angela Hsiang, an analyst at KGI Securities. "Chi Mei's stock is attractive because of its greater exposure to China compared with sector peers." Innolux Display, the world's No.2 LCD monitor maker, jumped 2.36 percent. Innolux is set to sign a T$48 billion ($1.5 billion) syndicated loan with 19 banks next Tuesday, two sources with knowledge of the deal told Reuters on Wednesday. Buying also spread to other technology heavyweights such as TSMC, the world's largest contract chipmaker, which edged up 0.16 percent. Tourism plays such as Leofoo Development Co also added points to the broader board. The stock jumped nearly 6 percent following a newspaper report that more tourists from China were expected to visit the island next year. "Tourism shares have been lagging the main board's gains because of a lack of trading stimulus, and good news like this is received quite positively," said Masterlink's Tang. For a table of foreign trading in Taiwan stocks, double-click on ((Reporting by Joan Hsu; Editing by Chris Lewis)) ASIA-PACIFIC STOCK MARKETS: Pan-Asia...... Japan........ S.Korea.... S.E.

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