Taiwan stocks inched up 0.09 percent on Friday, with financial shares such as Cathay Financial rising ahead of cross-Strait talks on Taiwan and China opening their financial sectors. The main TAIEX share index closed up 5.53 points at 5,880.77, but gave up much of its early gains as investors locked in profits. Turnover was active at T$144.5 billion ($4.3 billion), rising from Thursday's T$130.7 billion.
Financial shares rose as a third round of negotiations between Taiwan and China is set to take place on Saturday, which will include talks on opening up financial sectors to each other and expanding direct flights. The banking and insurance sub-index advanced 1.11 percent, extending a more than 18 percent rise so far this month. Cathay Financial, Taiwan's top listed financial holding firm, rose 1.53 percent, but Chinatrust Financial, the island's largest credit card issuer, ended 0.33 percent lower.
Investors are also expecting more Chinese funds to flow into the stock market as Taiwan will likely relax rules on investment from China after the cross-Strait talks. On Tuesday, a local newspaper said Taiwan planned to let Chinese investors indirectly buy up to 30 percent of Taiwanese companies in the latest sign of improving ties across the Taiwan Strait.
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