Taiwan Stocks Jump Most in a Year as Apple Suppliers Lead Surgeby
Rally follows rise in iPhone 7 orders at T-Mobile, Sprint
Taiwan currency strengthens most since Aug. 1 against dollar
Taiwanese shares jumped the most in a year amid speculation Apple Inc.’s latest iPhone model will prove popular, boosting earnings for the island’s suppliers.
The Taiex index advanced 2.8 percent at the close, its biggest gain since September 2015. Taiwan Semiconductor Manufacturing Co., a major Apple supplier, posted its biggest gain in a year, while Hon Hai Precision Industry Co., the main assembler of iPhones, added 3.9 percent. Apple has jumped 6.5 percent since Taiwan’s markets last traded on Wednesday amid holidays. The island’s dollar strengthened by the most since Aug. 1 against the greenback.
“It’s the Apple story again,” said Michael On, president of Beyond Asset Management in Taipei. “There’s a revived optimism that Apple will increase orders for Taiwanese suppliers after better-than-expected sales of the iPhone 7.”
T-Mobile US Inc. and Sprint Corp. said they’d received almost four times as many orders for the iPhone 7 as previous models, fueling speculation that the new product is off to a faster start than usual. Expectations for the iPhone 7 line had been muted before it was unveiled in San Francisco this month amid slowing growth in global smartphone sales.
The Taiex index climbed to 9,152.88, snapping a five-day, 3.9 percent decline. The benchmark equity gauge fell to a two-month low last week amid fund outflows. Global funds have sold a net $722 million of local shares this month, the most in Asia excluding Japan, according to data compiled by Bloomberg. TSMC jumped 5.2 percent and Hon Hai , the largest listed unit of Foxconn Technology Group, climbed the most since May in Monday’s trading.
Apple asked Foxconn to get production ready for more iPhone 7s, Taipei-based Economic Daily News reported on Monday. Among other Apple suppliers, Delta Electronics Inc. rallied 8.7 percent and Pegatron Corp. increased 7.2 percent. Quanta Computer Inc., which assembles the Apple Watch, gained 5.7 percent.
The local currency strengthened 0.75 percent to NT$31.45 per dollar. The yield on 10-year government bonds fell one basis point to 0.74 percent, Taipei Exchange prices show.