Shares ended little changed yesterday on concerns about the impact of new accounting rules on the appraisal of companies' fixed assets.
The weighted price index of the Taiwan Stock Exchange ended the session up 11.27 points, or 0.2 percent higher, at 5,782.75.
In the broader market, 502 stocks fell, 291 rose, and 161 ended flat.
Overnight losses in US shares also kept most investors on the sidelines, traders said.
The Dow Jones Industrial Average was off 0.2 percent while the NASDAQ Composite Index lost 1.25 percent.
The index fell to an 11-week low on Monday on investors' worries that many companies would report large losses or a sharp fall in their net asset value as they adopt the new rules.
Traders said that, although the concerns remain, some investors are now of the opinion that the impact of the new rules wouldn't be as severe as earlier thought.
Chip testing and packaging firm Siliconware Precision Industries Co (
But its bigger rival Advanced Semiconductor Engineering Inc (
There was some bargain hunting in heavyweight shares after Monday's decline, traders said. AU Optronics Corp (
Hopes that Taiwan Semiconductor Manufacturing Corp's (TSMC,
Macquarie Research Equities recently upgraded TSMC shares to outperform from neutral, with a 12-month target price of NT$57, giving shares a 20 percent upside from current levels.