Shares closed considerably higher yesterday, up 2.41 percent on regional strength, follow-through buying and support for stocks with exposure to China, dealers said.
They said investors found no comfort in Wall Street's lackluster performance overnight, with the Dow slipping 0.38 percent.
But they would focus on a speech by Federal Reserve Chairman Ben Bernanke at the US central bank's annual conference later yesterday, from which the market expects to get a clue on the next Fed move on interest rates.
The TAIEX closed up 210.95 points at the day's high of 8,982.16 on turnover of NT$166.14 billion (US$5.03 billion).
Risers led decliners 1,221 to 500, with 216 stocks unchanged.
Jack Tam, assistant vice president with Yuanta Core Pacific Securities Investment Consulting (
"Some local firms' exposure to the mainland market really paid off. Their earnings results encouraged investors to chase share prices much higher," Tam said.
Asian stocks rose to their best level in three weeks after strong profits from sector heavyweight Dell Inc boosted technology shares and on news US President George W. Bush will propose reforms to help homeowners with subprime mortgages.
MSCI's measure of Asia Pacific stocks excluding Japan climbed 2.2 percent by midday to levels last seen on Aug. 9, while Japan's Nikkei average gained 2.6 percent to end at a two-week closing high.
Stocks in major centers in the region from Hong Kong to Australia, Singapore and India were all up more than 1 percent.
For the week to August 31, the weighted index closed up 292.07 points or 3.36 percent after a 7.41 percent increase a week earlier.
Average daily turnover stood at NT$136.08 billion, compared with NT$132.65 billion a week ago.
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