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Taiwan: Stocks hit near 1-year high on optimism over foreign buying

Monday, July 18, 2016 - 11:29
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[TAIPEI] Taiwan stocks rose to their highest levels in nearly one year on Monday on investor optimism over recent foreign investors' buying.

Investors may be buying ahead of the release of June export orders data later this week, which could spark profit taking if it shows persistent weakness in demand for the island's tech goods, traders said.

The main Taiex index was up 0.5 per cent at 8,995.68 as of 0246 GMT, after rising as much as 0.65 per cent to 9,008.06, its highest since July 21, 2015, earlier in the session. The index had closed 0.9 per cent higher in the previous session and posted its fifth straight gain.

Though the main index crossed the 9,000 level in morning trade, it hasn't closed above the key marker since July 2015.

The electronics subindex rose 0.4 per cent, while the financials subindex gained 0.9 per cent.

Orders, a leading indicator of exports for the trade-reliant economy, have slid for 14 straight months through May as weak global demand persists for the island's signature tech goods.

Among large-caps, electronics maker Hon Hai Precision Industry Co Ltd was up around one per cent, while contract chipmaker TSMC was down 0.3 per cent.

The Taiwan dollar firmed T$0.03 to T$31.960 per US dollar. The local dollar is around its strongest levels to the greenback in nearly a year.

REUTERS