Taiwan: Stocks rise on bargain hunting; ASE extends gains

[TAIPEI] Taiwan stocks rose on Monday on bargain hunting and led by further gains in Advanced Semiconductor Engineering Inc after the top chip and test packaging company said last week it would join hands with a rival to form a new holding company.

As of 0239 GMT, the main Taiex index rose 0.3 per cent to 8,489.07, after closing up 0.8 per cent in the previous session.

The electronics subindex rose 0.2 per cent, while the financials subindex gained 0.7 per cent.

On Thursday, ASE and Siliconware Precision Industries Co Ltd (Spil), the island's top two chip and test packaging companies, agreed on a memorandum of understanding to form a new holding company in the face of fierce industry competition.

Shares in ASE were 2.3 per cent higher, after closing at its upper limit of 10 per cent on Friday. They were suspended from trade on Thursday pending the announcement.

SPIL shares were up 0.2 per cent.

The Taiwan dollar softened T$0.082 to T$32.610 per US dollar.

REUTERS