Market Report – Tech Gains

In today’s market report… Taiwan says it will allow contract chipmakers and flat-panel makers to acquire rivals in China, lifting technology shares.

Taiwanese firms have urged the government to allow them to invest in mainland China or use more advanced technologies. It’s part of a bid cut costs and compete with global rivals like those in South Korea.

Taiwan Semiconductor Manufacturing Co Ltd and UMC, the world’s two largest contract chipmakers, rallied on the news, boosting Taiwan’s index.

Meanwhile the yen went down from Monday’s eight month high after Japan’s finance minister refused to rule out currency intervention, helping Japanese exporters like Honda.

The Australian dollar rose after reports its central bank will raise rates in November and December. It will be one of the first major economies to raise rates since the global financial crisis.

But the Shanghai index was down ahead of a week-long public holiday in China and a slew of new share issues.

Two high-ranking Chinese officials also cautioned against blind optimism about China’s economy.

They say the foundations of recovery are not yet solid and China’s exports still face severe challenges as the global recovery looked set to be slow and bumpy.

(NTDTV)