Taiwan Stocks Jump Most in Eight Months on China, Apple Optimismby
TSMC, Hon Hai drive gains after report on iPhone 7 production
No immediate negative reaction to Tsai’s speech: KGI analyst
Taiwan’s stocks jumped the most since September, led by technology shares, amid speculation the inauguration of the island’s president won’t disrupt the trade relationship with China and Apple Inc. orders for the iPhone 7 will be higher than estimated.
The Taiex index climbed 2.6 percent at the close in Taipei, the most among Asian equity benchmarks, to erase its losses for this year. More than 13 shares rose on the gauge for each that fell. Apple vendors Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co. were the biggest contributors to the gains after the iPhone maker asked suppliers to prepare production of a new version of its smartphones, according to an Economic Daily News report.
The U.S. smartphone maker asked suppliers to prepare for an output of 72 million to 78 million units of the iPhone 7 series by the end of 2016, the highest target in about two years, the Economic Daily reported, citing unidentified suppliers it surveyed in China. Tsai Ing-wen said in her speech she will seek peaceful ties with China while resisting pressure from Beijing to acknowledge the idea that they are part of a single nation. The new leader was “ambiguous on the fundamental issue,” the Xinhua News Agency said Friday, citing the mainland’s Taiwan Affairs Office.
“There was nothing unexpected in Tsai’s speech,” said Chu Yen-min, president of KGI Securities Investment Advisory in Taipei. “It seems like China will continue to observe Tsai and there hasn’t been any immediate severe negative reaction.”
TSMC and Hon Hai, which count Apple as their biggest customer by revenue, climbed at least 3.7 percent. Taiwan’s currency rose 0.3 percent, the most in five weeks, to NT$32.641 per U.S. dollar, Taipei Forex Inc. prices show.