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Taiwan stocks rose 2.69 percent to end at an 8-week high on Thursday in a catch-up rally to US stocks, helped by a jump in construction shares after a strong typhoon swept through northern Taiwan.

The main TAIEX share index ended up 152.42 points at 5,813.39 on the first day of trade after Typhoon Aere forced markets to close on Tuesday and Wednesday. Turnover swelled to T$118.8 billion, the highest in nearly four months.

Investors pushed up the stocks of tech companies to catch up with rises in their US-listed shares earlier this week, helping the bellwether tech sub-index end up 2.47 percent.

For example, AU Optronics Corp's shares rose 3.2 percent to T$45.10 after the display screen maker's US depository receipts jumped 5.41 percent on Wednesday.

"Global markets have reflected the large fall in crude oil prices over the past two days," said Richard Tsai, a senior vice president at Grand Cathay Securities.

The Taipei shares of the world's top contract chipmaker, Taiwan Semiconductor Manufacturing Co TSMC, rose 3.4 percent to T$48.60, after its ADRs rose 3.23 percent on Wednesday.

On the non-tech side, investors chased construction shares in anticipation of reconstruction income after the typhoon triggered landslides and flash floods, forcing thousands to flee their homes.

The over-the-counter TAISDAQ index leaped 3.37 percent to end at 115.79, and September TAIEX futures rose 3.16 percent to finish at 5,783.

Copyright Reuters, 2004


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