TAIPEI, Nov 25 (Reuters) - Taiwan stocks rose 0.69 percent to a one-week intraday high on Wednesday, with contract laptop maker Compal Electronics leading gains on expectations of an increase in PC shipments next year as economic recovery gathers steam.

At 0200 GMT, the main TAIEX share index had risen 49.63 points to 7,764.19, hitting a one-week intraday high and extending gains from the previous session.

"Investors are already looking forward to a better economy in the first quarter of next year," said Andrew Deng, an assistant vice-president at Taiwan International Securities.

Technology shares helped power gains on the main index, as a stronger outlook for the global economy fuelled hopes for a pick-up in demand for hi-tech devices, including flat-panel TVs and personal computers.

"Sales of LCDs and personal computers could see further growth as we step into the first quarter of next year, when demand in key markets like China warms up," said Deng.

Quanta expected PC shipments in the first quarter of 2010 to fall less than previously projected, local media reported, while smaller rival Compal expects its shipments to rise by a more-than-expected 20 percent in the fourth quarter.

Quanta and Compal, the world's two largest contract PC makers, rose 1.24 percent and 2 percent, respectively, sending the electronic sub-index 0.89 percent higher.

LCD makers also supported the broader market on a newspaper report that the Taiwanese government could consider loosening restrictions on investments by LCD makers in China.

Chi Mei Optoelectronics and AU Optronics were up 3.47 percent and 1.75 percent, respectively.

Bucking the broader market trend, Chinatrust Financial , the island's largest credit card issuer, fell 0.25 percent after financial regulators in Taiwan turned down its plan to raise funds in a private placement.

HOT STOCKS

-- Yulon Motor rose 1.12 percent after a local newspaper reported that China's Geely Auto and Chery Auto would set up a production facility in Taiwan, manufacturing cars for export to the Chinese east coast and Southeast Asia. ((Reporting by Joan Hsu; Editing by Chris Lewis))
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