Share prices rose 0.57 percent yesterday as late bargain-hunting offset earlier falls driven by Wall Street's overnight decline amid continued concerns over high interest rates, dealers said.
Foreign investors have started building new positions after several days of selling, pushing the composite index sharply lower, they said.
The TAIEX closed up 40.12 points at 7,074.15, on turnover of NT$106.42 billion (US$3.33 billion). Risers led decliners 446 to 355.
"Investors were willing to hunt for bargains after a recent correction of more than 400 points [on the index]," said Johnny Lee, a manager with President Securities Co (統一證券).
The steel sector rallied on expectations of firmer product prices for the third quarter, Lee said, with some major Asian steelmakers set to unveil their products quotations next week.
The financial stocks gained strength after a report that Taiwan Fire Marine Insurance Co (台灣產險) had secured China's regulatory approval to set up a representative office in Shanghai.
"Such a report re-ignited hopes for further relaxation [of the regulations] for Taiwanese financial firms' presence on the mainland following recent stalled relations across the Taiwan Strait," Lee said.
Taiwan Fire Marine Insurance advanced NT$0.35 to NT$19.60.
AU Optronics Corp (
Both Cando, a unit of AU Optronics, and Allied Material said they had no immediate such plans.
Allied Material was limit-up NT$0.69 at NT$10.60.
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