TAIPEI, Nov 16 (Reuters) - Taiwan stocks rose to a one-month intraday high on Monday as upbeat news in the U.S. retail sector raised hopes for better sales in tech exporters, while Chi Mei led gains after it decided to be merge with Innolux.

As of 0200 GMT, the main TAIEX share index had risen 1.17 percent, or 90.04 points, to 7,755.67, its highest intraday level since Oct. 21.

Chi Mei Optoelectronics, Taiwan's No.2 LCD maker, rose by its 7 percent limit to a more than five-month intraday high, boosting the optoelectronics sub-index by 2.2 percent. Innolux, the most active issues by turnover, edged up 0.21 percent.

"The broader market reflected a positive mood on Wall Street, while Chi Mei's decision to merge with Innolux attracted domestic as well as foreign buying," said Tom Tang, a vice president at Masterlink Investment Advisory.

Chi Mei on Saturday agreed to be merged with Innolux through a share swap worth about $1 billion to create a new company that aims to have a stronger foothold in the highly competitive LCD industry dominated by bigger Korean rivals.

Other LCD makers also joined the rally, with AU Optoelectronics, the world's No.3 flat-panel maker, edging up 1.1 percent, and Hannstar Display jumping 5.5 percent.

Buying also spread to other major exporters as the U.S. retail sector, the island's second-largest export market, offered strong sales forecast in the key holiday season.

Contract chip maker TSMC and electronics parts maker Hon Hai jumped more than 1 percent. Smartphone maker HTC Corp was up 0.82 percent.

However, the main index's gains are likely to wane later in the session as volume could fail to expand beyond T$100 billion ($310 million), analysts said.

"The main index could stack up gains slowly due to steady foreign fund inflows, but thin volume could stall the broader board's rising momentum," Masterlink's Tang said.

Analysts said the TAIEX could trade in a boxed range between 7,400 and 7,800 points this week.

Netbook manufacturer Asustek traded flat after its chairman told a local newspaper that it plans to unveil products during the next Consumer Electronics Show in the United States.

For a table of foreign trading double-click on

((Reporting by Joan Hsu; Editing by Jacqueline Wong))
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