Taiwan stocks closed 1.61 percent higher to a level not seen in nearly 3 months on Wednesday as the market resumed its tech-led rally, relieved earnings season had passed without negative surprises from major companies.
The TAIEX share index advanced 92.60 points to end at 5,858.14, erasing three straight sessions of losses to reach its highest close since June 10.
The big winners were sectors that led the market's rebound from a one-year low in August, such as display screens and memory chips. Investors had waited in the wings for the August 31 deadline for reporting quarterly results to pass before jumping back in.
The island's biggest memory chip maker, Powerchip Semiconductor, was the day's most heavily traded issue adding 6.25 percent to T$25.50. AU Optronics, the world's third largest display screen maker, rose 3.2 percent.
"Market confidence is much better now," said Alvin Teng, assistant research manager at SinoPac Securities. "Nothing happened to the major companies, and problems at smaller companies have only been reflected in individual stocks."
Taiwan's biggest venture capital investor, China Development Financial Holdings, shook off losses sparked by slashing its 2004 profit forecast earlier this week by gaining 0.66 percent in active trading.
The over-the counter market's TAISDAQ index jumped 2.36 points, or 2.07 percent, to 116.30, while September TAIEX futures stuck close to the spot market, adding 1.61 percent to close at 5,856.
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