Taiwan stocks hit 3-month closing high

Financials were up 3.6 percent.

The main TAIEX share index had risen more than 2 percent by midday before closing up 151.05 points at 7,911.68 even after China8217;s tepid manufacturing data,its highest finish since May 4.

8220;Shares of some technology heavyweights such as HTC are doing very well now,and they might push the market higher if investors have confidence in their fundamentals,8221; said Tom Tang,a vice-president at Masterlink Investment Advisory.

Smartphone maker HTC Corp jumped 3.6 percent and Hon Hai Precision Industry Co gained 3.5 percent. Mediatek Inc,the island8217;s top chip designer,fell 0.7 percent after giving weaker sales and margin forecasts for the third quarter.

Hua Nan Financial Holdings Co Ltd added 2.8 percent after a local newspaper report on Monday that the company was likely to join hands with foreign banks based in China to invest in the mainland.

Buying spread to other smaller banks,with Taiwan Business Bank up 4.2 percent and King8217;s Town Bank up 6.7 percent to its daily limit.

8220;Foreign investors should be buyers today,8221; said Kevin Chung,manager at Jih Sun Investment Consulting.

8220;But we have to be cautious after recent gains and to see if more U.S. economic data is positive,8221; Chung said.

Foreign investors sold a net T4.62 billion 144 million of Taiwan shares on Friday,while they bought a total T63.4 billion of local shares in July.