Taiwan stocks are seen range-bound this week, caught between caution over ongoing post-election political disputes and support from Friday's Wall Street gains.
Solid first-quarter profits are also seen mildly positive.
"The market could turn conservative after Saturday's rally as opposition parties will likely continue their protests," said Albert Lin, research vice-president at Hotung Securities.
"But, we also have positive news like strong Nasdaq gains on Friday and expected improving corporate first quarter profits."
The main TAIEX index gained 6.7 percent last week, closing at 6,545.54 on Friday, recouping most of the ground lost a week earlier after the disputed presidential election.
Beyond China, the index had been Asia's best performer this year until the March 20 election.
Several analysts expect the index to trade within 200 points of Friday's closing level. Some dismissed the negative impact of the election disputes.
"I reckon the impact should ease. The weekend rally attracted fewer people and even the opposition knows the public don't like to see these disputes drag on," said Michael On, managing director at Beyond Asset Management which manages US $60 million.
Taiwan's listed firms will report their March sales by next weekend and first-quarter profits by the end of April. Most are seen posting improving figures as the local economy rebounds on strong demand from China, the island's top export market.
Taiwan recently raised its 2004 economic growth forecast to 4.7 percent, up from 3.2 percent last year. Many private economists expect growth this year to exceed six percent - the fastest pace in seven years.
More than 60,000 supporters of Taiwan's opposition party protested on Saturday to demand an independent inquiry into an apparent election-eve assassination attempt on President Chen Shui-bian that they say swung the poll in his favour.
The Nationalists have warned of "endless" protests if their demands are not met.
Legal delays in agreeing to an election recount could weigh on market sentiment.
Recent high-flying display screen stocks are seen rising further on expected solid first-quarter profits boosted by growing demand - though there was some profit-taking on Friday.