Taipei shares close higher led by electronics on Wall St gains/Dell news

TAIPEI (AFX-ASIA) - Share prices closed higher, led by the electronics sector, reversing some of the losses seen earlier this week, as investors took their cues from an overnight rally on Wall Street and the encouraging news from Dell which confirmed it will achieve its first quarter earnings forecasts, dealers said.	    They said sentiment was further bolstered by easing tensions between the U.S. and China after President George W. Bush expressed his regret over the lost Chinese pilot, missing since his fighter jet collided with a U.S. surveillance plane over the South China Sea last weekend.	    However, dealers said it is too early to say whether the local bourse's gains can be sustained as there is little certainty that the volatility in U.S. equity markets has passed.	    Despite Dell's positive profit confirmation, the market will still be watching closely for first quarter earnings reports to be issued by other major U.S. companies later this month.	    The weighted index closed up 109.28 points or 2.02 pct at 5,515.13, off a high of 5,584.14 and a low of 5,508.81. 	    Volume was 2.29 bln shares worth 82.98 bln twd.	    Gainers led decliners 460 to 74, with 62 stocks unchanged. 	    Some 72 stocks closed limit-up and five limit-down. 	    The textile sector was up 2.96 pct, paper up 2.93 pct, electronics up 2.61 pct and construction up 2.37 pct.	    The plastic sector was up 2.30 pct, cement up 2.14 pct, food up 0.97 pct and financials up 0.36 pct.	    The Taiwan dollar was last quoted at 32.9170 against the U.S. dollar, from Wednesday's close of 32.9790.	    "I prefer to say the gains were a technical rebound after the (local) market was oversold. The Wall Street rally served as a boost to sentiment, but it has little to do with any change in local economic fundamentals," Jack Tam, an analyst with Yuanta-Core Pacific Securities.	    According to Tam, the Taipei weighted index had fallen as much as 8.1 pct since March 27.	    "No one can rule out the possibility of further volatility among U.S. high tech stocks. Future movements of Taipei stocks will still depend on U.S. equity markets," Tam said.	    JF Assets Management fund manger Grace Lee said while Dell affirmed it will meet its earnings forecast, the market needs more evidence to determine whether Dell's news is just an isolated case. 

Related stock : (NIL)