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Taiex extends gains after rosy report from Dell

Taiex extends gains after rosy report from Dell

Taiwan stocks climbed, extending gains for a second week. Computer-related shares such as Taiwan Semiconductor Manufacturing Co. rose after Dell Inc. reported second-quarter profit and sales that beat analyst estimates.
"Dell's results are testament to rising computer demand, which will translate into better profitability for component suppliers," said Bevan Yeh, who manages US$54 million in assets at Prudential Securities Investment Trust Co. in Taiwan.
High Tech Computer Corp. rose after NTT DoCoMo Inc., Japan's biggest mobile-phone company, said it will start selling phones made by Fujitsu Ltd. and High Tech next year.
The Taiex index added 210.95, or 2.4 percent to close at 8,982.16 in Taipei. The measure rose 3.4 percent this week after gaining 7.4 percent last week. About seven stocks climbed for every two that fell yesterday. Futures due in September advanced 3.2 percent to 8,976.
Taiwan Semiconductor, the world's biggest supplier of made-to-order computer chips, gained NT$2.20, or 3.6 percent, to NT$62.70. Quanta Computer Inc., the world's largest maker of notebook computers for clients including Dell, added 80 cents, or 1.5 percent, to NT$53.70. Compal Electronics Inc., the world's second-largest laptop maker, climbed 80 cents, or 2.2 percent, to NT$36.70.
Round Rock, Texas-based Dell, the No. 2 maker of personal computers, reported second-quarter profit of US$0.32 a share, beating the US$0.31 forecast by analysts in a Bloomberg News survey.
High Tech, the world's biggest maker by volume of handsets based on Microsoft Corp.'s Windows operating system, jumped NT$29, or 6.9 percent, to NT$447.50. DoCoMo will sell so-called smart phones from the first quarter of next year, the Tokyo-based company said Thursday. Smart phones allow users to send e-mail, read business documents and browse the Internet.
The Taiex fell 3.3 percent this month, its first monthly drop since April.
Elsewhere, Chunghwa Telecom Co., Taiwan's largest phone operator, rose NT$1.10, or 1.9 percent, to NT$58.60. Chief Financial Officer Joseph Shieh said profit growth of 10 percent this year is "achievable" because sales are expected to beat the company's projection and depreciation costs will be lower.
Hon Hai Precision Industry Co., which makes iPods for Apple Inc. and video game consoles for Nintendo Co., slipped NT$2, or 0.8 percent, to NT$245. Second-quarter profit grew 18 percent from a year earlier to NT$15.6 billion (US$472 million), according to figures derived from first-half earnings. That's less than the NT$16.7 billion forecast by analysts in a Bloomberg News survey.