Taiwan stocks rose for a second day on optimism that US demand for the nation's electronic goods may rise after retail sales in the US had the biggest increase in October than in any other month over the past 10 years.
Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) and other computer-related companies have led gains after Hewlett-Packard Co said sales beat forecasts and consumer demand picked up.
The TAIEX advanced 125.89, or 2.9 percent, to 4403.59, bringing its gains in the past two days to 6.4 percent. Two stocks rose for every one that fell. In the past month, the index has gained 19 percent in US dollar terms.
"The rally can go on for a bit longer," said James Squire, who helps manage about US$2.5 billion in Asian stocks at Baring Asset Management (Asia) Ltd.
"Interest rates have fallen and the printing presses have been turned on globally. If there is money to spend as the risk appetite increases, then some money will always find its way into equities."
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