Share prices rose 0.71 percent yesterday to more than five-year highs on the back of Wall Street's sharp gains overnight and as hopes for an end to US rate hikes outweighed a spike in oil prices, dealers said.
They said that while technology stocks rallied in tandem with their US peers, tourism-related stocks gained on sustained expectations for improving economic ties across the Taiwan Strait.
Foreign investors were also present, helping bolster the market.
The TAIEX rose 49.32 points at 7,038.78, on turnover of NT$143.59 billion (US$4.42 billion). This was the best finish since 7,053.29 points on Sept. 16, 2000.
"Thanks to foreign investor interest, the Wall Street factor led the broad market higher despite some profit-taking," said Jack Tam, an assistant vice president at Yuanta Core Pacific Capital Management (元大京華投顧). "The upturn in the Taiwan dollar suggests foreign capital inflows."
Strong corporate results for the first quarter, particularly from technology firms, also triggered buying, with better cross-strait economic ties additionally boosting sentiment.
Taiwan Semiconductor Man-ufacturing Co (
Makers of dynamic random access memory chips advanced on strong first-quarter results posted after market close on Tuesday.
Nanya Technology Corp (
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