Taiwan share prices closed 0.64 percent higher yesterday on the back of futures-related buying and expectations of growing foreign interest, dealers said.
Morgan Stanley futures contracts for this month on the Taipei index were due to be settled based on the spot market's close yesterday.
Dealers said that local markets would be cautious in coming sessions ahead of an extended break for the Lunar New Year holidays.
The weighted index closed up 37.17 points at 5,879.93 on turnover of NT$63.58 billion (US$2 billion).
Risers led decliners 605 to 184, with 180 stocks unchanged.
The construction sector was up 1.75 percent, transport up 1.27 percent, electronics gained 1.20 percent while financials rose 0.15 percent.
Taipei stock markets will be closed from Feb. 4 for the Lunar New Year holidays and reopen on the 14th.
Taiwan Semiconductor Manufacturing Co (TSMC,
"The spot market was supported by investors in the futures market on contracts settlement day," said Fuhwa Securities Co (
Firmer US technology stocks also gave sentiment towards electronics stocks a lift after TSMC scored gains, he said.
However, investors may adopt a cautious approach next week in the run-up to the Lunar New Year holidays.
"There are just four sessions left before the holidays. A note of caution could feature on the bourse next week," Chueh said.
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