Taiwan's export orders climbed for a fourth straight month fueled by consumer demand in key markets, the United States and China, that has helped lift the outlook for its technology manufacturers this festive season. The island's tech industry is highly dependent on overseas demand for consumer electronics and an enthusiastic reception for new models of smartphones and tablets is a good sign for Taiwanese components, which make up a large share of exports. Taiwan's export orders in October rose 3.2 percent from a year earlier, lifted by strong orders for new mobile devices, Taiwan's Ministry of Economic Affairs said. Orders from China, Taiwan's largest export market, climbed 3.2 percent from a year earlier, while those from the United States and Europe saw jumps of 9 percent and 7.6 percent, respectively. Orders from Japan contracted by 1.6 percent. Hsu Kuo-An, an economist at Capital Securities in Taipei, said pent-up Chinese demand, in addition to preparation for the holiday season in the United States in Europe, was the main factor behind October's better-than-expected numbers. Hsu, and other economists, give some credit to the Chinese consumer for October's better orders, saying this could improve as the world's second-largest economy embarks on ambitious reforms, shifting towards greater reliance on consumption and services. A Reuters poll of 10 analysts expected export orders in October to rise a median 0.7 percent from a year earlier, and up from September's 2 percent. Orders rose for three straight months before October, following five consecutive declines from February to June. The ministry added that November's orders as well as full-year orders will see year-on-year declines, partly due to a high base previously. Export orders usually lead actual exports by two to three months and are an indicator of future demand for high-tech goods and electronic components. About 36 percent of Taiwan's stock market is made up of technology-related stocks, according to Thomson Reuters data. Mixed Export Fortunes Bellwether companies reported mixed results in the latest earnings season, indicating that Taiwan's export machine faces challenges heading into next year. Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chip maker, posted record third-quarter net profit, while Hon Hai Precision Industry Co Ltd, which manufactures Apple's iPhone, also saw better-than-expected results. Branded companies such as HTC Corp and Acer Inc have not fared so well, however, with HTC posting its first-ever quarterly deficit for the June to September period and Acer aggressively moving to cut costs after suffering a large quarterly loss. Labour shortages and higher wages in China have squeezed the profit margins of Taiwanese firms with operations on the mainland, DBS Group said in a research report. The technology gap between Taiwan firms and their Chinese counterparts has also been narrowing, with the latter boosting production capacity for high generation flat panels this year. Hsu of Masterlink Securities said that the higher export order figures should not change the recent downward revisions to Taiwan's full-year GDP. The U.S. economy is still struggling to gain momentum on a slow recovery in consumer spending while growth is also expected to slow in China, Taiwan's largest market. (Reuters)