Share prices closed 1.77 percent higher yesterday, rising sharply after Wall Street's overnight gains took the US market to a four-year high, dealers said.
They said news that the Cabinet decided to pursue talks with China on expanding bilateral air links for both passenger and cargo services gave sentiment a solid boost after the return of foreign investor interest.
The TAIEX closed up 112.03 points at 6,455.57, the highest closing level since 6,574.75 on April 28 last year.
"Improving industry prospects raised investor confidence in stock holdings," said Stanley Hsu, a manager with First Taisec Securities (
Riding on the performances of their US counterparts, local tech stocks outperformed the broader market on hopes for their prospects as well as for more positive corporate earnings guidance.
"Investors are willing to look for stocks with earnings growth momentum," Hsu said.
Besides foreign investors continuing to buy, the stock market also attracted interest from local investors wanting to build portfolios, he added.
Powerchip Semiconductor Corp (力晶半導體) closed up 1.23 percent at NT$24.80, on the back of earnings results for the second quarter and positive guidance.
Taiwan Semiconductor Manu-facturing Co (台積電), the world's largest contract chipmaker, rose 1.8 percent to NT$55.9 and rival United Microelectronics Corp (聯電) rose 4.7 percent to NT$22.3, after rallies in their respective American Depositary Receipts.
Asustek Computer Inc (華碩) gained 2.68 percent to NT$88.30, following a report that the firm had secured an order from Japan's NEC Corp for notebook computers.
RSS