Taiwan: Stocks edge up on overseas markets, weak PMI caps gains

[TAIPEI] Taiwan stocks rose slightly on Monday but gains were capped by a weak reading in manufacturing activity at home.

As of 0220 GMT, the main TAIEX index rose 0.2 per cent to 9,834.80, after closing down 0.3 per cent on Thursday.

Taiwan's financial markets were shut Friday for the Labor Day holiday. After the long weekend, gains were limited by tentative trading in overseas markets.

The HSBC's PMI reading issued on Monday for Taiwan contracted for the first time in 20 months in April, indicating a sluggish start for the tech export-driven, trade reliant economy in the second quarter.

The electronics subindex was down 0.1 per cent, while the semiconductor index was off 0.7 per cent.

However, the financial subindex was gaining 0.8 per cent, helping to lift the overall index.

Financial stocks, some of which are seen as close to the government or which have exposure to China, were up on hopes that a key meeting between Taiwan's ruling party and its counterpart in China on Monday might bring more business opportunities.

Shares in Fubon Financial Holding rose 1.7 per cent, while those in Chang Hwa Commercial Bank were 0.8 per cent higher.

The Taiwan dollar was up T$0.071 to stand at T$30.681 to the US dollar.

REUTERS