Share prices closed 1.3 percent higher yesterday in line with generally firmer regional markets and as investors hoped for a more relaxed government policy stand on investment in China, dealers said.
Cross-strait trade and economic policies were top of the agenda at a government forum yesterday and today amid reports the Cabinet is considering a more flexible approach to China.
The TAIEX rose 82.86 points to 6,459.25, on turnover of NT$74.89 billion (US$2.28 billion).
Risers led decliners 724 to 240, with 139 stocks unchanged.
"Basically, our market gained ground alongside the region despite a lackluster Wall Street overnight," Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president, said.
Tokyo's Nikkei 225 index rose 1.99 percent yesterday. Hong Kong's market rose 1.8 percent.
"It is not unlikely that government funds played a role in the gains as a show of support to the Cabinet-hosted conference on sustainable economic growth," Fang added.
Some investors might be betting again on a possible easing of China policy, but the prospect was rather remote given opposition from pro-independence politicians, he added.
The technology subindex rose 1.9 percent, led by chip testing and packaging companies boosted by strong second-quarter results from Siliconware Precision Industries Ltd, (矽品精密), traders said.
Siliconware, the nation's No. 2 chip testing and packaging company by revenue, rose 5.7 percent to NT$38.9, while global No. 1 Advanced Semiconductor Engineering Inc (
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