Taiwan stocks closed 1.97 percent higher on Thursday, thier biggest daily percentage rise in six weeks, boosted by upbeat comments from the US Fed and MSCI adding Prime View International to its Taiwan index. The main TAIEX shares index finished up 136.06 points at 7,034.96, a near two-week closing high. Turnover was light at T$124 billion ($3.77 billion), but higher than Wednesday's T$104 billion.
Shares of Prime View International, which supplies flexible displays for electronic reading devices, gained 6.93 percent, while the electronics sub-index advanced 1.82 percent. Chinese Gamer, which was also added to MSCI's Taiwan index, jumped 3.13 percent.
"The Federal Reserve's comments boosted market sentiment," said Bevan Yeh, a senior fund manager at Prudential Financial Securities Investment Trust. "But investors could still be wondering how fast and how steady the global economic recovery will be."
The Federal Reserve said on Wednesday the US economy was showing signs of levelling out and left its near-zero interest rate unchanged at the end of a two-day policy meeting. Major technology shares tracked gains on Wall Street. Taiwan Semiconductor Manufacturing (TSMC), the world's biggest contract chip maker and the market's most active stock by turnover, gained 1.9 percent.
The banking and insurance sub-index reclaimed some of the ground lost in the previous session, rising 2.88 percent. Shares of Cathay Financial, the island's top listed financial holding firm, jumped 3.55 percent after a newspaper said Morgan Stanley had raised its target share price.
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