Taiwan stocks leaped 2.32 percent on Friday, led by gains in tech exporters such as TSMC and following a Wall Street rally. The main TAIEX share index soared 149.38 points to close at 6,575.77, changing course from Thursday's 0.66 percent drop and reclaiming all the ground it had lost in the past week.
All sectors gained ground, with turnover spiking to T$110.2 billion ($3.39 billion) from the previous session's T$82.83 billion. "The outflow of foreign funds in the past few weeks has all come back today," said JF Asset Management's fund manager Charles Chen. "We think it will stay. Strong global market performance really helped domestic shares up". US stocks rallied on Thursday after Federal Reserve Chairman Ben Bernanke steered clear of fuelling inflation concerns.
Other Asian stock markets followed advances on Wall Street. The electronics sub-index gained 1.82 percent, taking heart from sharp gains in US peers. Taiwan Semiconductor Manufacturing Co (TSMC), the market's most heavily weighted stock and world's top contract chip maker, leaped 4.58 percent. Smaller rival United Microelectronics Corp rose 1.35 percent.
Taishin Financial Holdings Co Ltd went limit-up after the top financial regulator approved the financial holding firm's plan to buy more stake in Chang Hwa Bank.
Home appliance maker Tatung Co Ltd was also limit-up after the Commercial Times reported that Tatung said on Thursday at its annual shareholders' meeting that it would speed up its investment in real estate in Taiwan.
But smartphone maker High Tech Computer Corp (HTC) reversed from earlier gains and dropped the daily 7 percent maximum to T$828.0 after the firm announced that it will start selling own-brand phones.
CLSA analyst Vincent Chen said that the major issue now for HTC was potential conflict between establishing its brand and continuing to do contract work for major cellphone companies and operators.
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